FKCCI seeks govt. intervention to stop surge in steel prices

Trade body FKCCI that represents medium, small, and micro enterprises (MSMEs) in Karnataka demanded immediate government intervention to stop further surge in steel prices.

MSMEs, which consume high amount of steel, are yet to recover from the COVID-19-affected business losses and a steel price hike by 35%-40% in the last few months has put them under further distress, it said.

Perikal M. Sundar, president of FKCCI, said immediate intervention of the government was the need of the hour to stop surge in steel prices. He urged the government to enforce a ban on steel export for at least six months and also lift import duty on steel.

The cartelization of steel manufacturing industries should be controlled. The maximum incentive should be given under the stimulus package announced by the Central Government. The government should also reduce GST and reduce import restrictions.

“We, as a trade body, request the government to save the domestic industry by imposing an export duty on steel so that prime steel producers can cater to the domestic market. It is also necessary to form a steel regulator so that prime steel producers can’t increase prices arbitrarily. The provision of the Essential Commodities Act can be invoked to check the malpractices by prime steel producers,The 5% customs duty on import of iron and steel scrap should also be reduced. The government may also think of subsidising steel prices,” Mr. Sundar insisted.