Government cuts export duty on steel, industry expects demand to increase after decision

While welcoming the decision, the industry said that the government’s decision to remove export duty on steel items will increase the demand for steel. Which will help the industry a lot amidst the decreasing demand worldwide.

cut in export duty on steel

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Central government on steel products and iron ore export duty There has been a cut in which has come into effect from Saturday. This fee was imposed six months ago. The Finance Ministry issued a notification in this regard on late Friday night. It stated that special pig iron and steel Export of the product, iron ore pellets, will no longer attract any duty. Apart from this, export duty on low iron iron ore lumps and fines (in which iron is less than 58 per cent) has also been made zero. Whereas, iron ore lumps containing more than 58 percent iron and fines But now the export duty has been reduced to 30 percent.

Consensus was made in the meeting held at the beginning of the week

According to a government notification, the import duty on anthracite/PCI, coking coal and ferronickel, used as raw materials in the steel industry, has been increased to 2.5 per cent, while coke and semi-coke which were earlier nil. Now it has been increased to five percent on these. Steel Minister Jyotiraditya Scindia had a meeting with Finance Minister Nirmala Sitharaman earlier this week which was attended by other senior officials including Revenue Secretary Sanjay Malhotra.

After this meeting, it has been decided to cut the fee. Earlier in May, the Finance Ministry had increased the export duty on pig iron and steel products from zero to 15 per cent. The move was aimed at discouraging exports and increasing domestic availability to bring down prices.

Industry welcomed the decision

While welcoming the decision, the industry said that the government’s decision to remove export duty on steel items will increase the demand for steel. Industry members said this on Saturday. Seshagiri Rao, JSW Steel’s joint managing director and group chief financial officer, said it would prove to be a big medicine to revive domestic steel demand. Especially when there is a huge decline in global steel demand. Indian Steel Association (ISA) general secretary Alok Sahay said the decision shows the government’s concern for the common man and the industry, soon after inflation has come down to a reasonable level.

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Abhyuday Jindal, Managing Director of Jindal Stainless, termed it as a much-awaited step. Jindal said, “It was the need of the hour to enable domestic manufacturers to compete with global counterparts. I am sure this will give a thrust to ‘Make in India’ and the local to global approach of the government.”

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