Industry slams 2.5% hike in customs duty on steel products

LUDHIANA: Industry has condemned 2.5% increase in basic customs duty on steel products.
Avtar Singh, president, CICU, in a statement released on Thursday, said this would further affect the industry reeling under crisis.
Custom duty on flat products of steel such as hot and cold rolled (HR/CR) sheets and coils has been raised from 7.5% to 10% and on long products of steel like TMT bars, angles and channels has been revised up words 5% to 7.5%.
Upkar Singh Ahuja, general secretary, CICU, said instead of seeking protection, Indian steel makers should manage their costs and upgrade their efficiency rather than demanding relief from customs duty hike at the cost of MSME industry which is currently battling sluggish markets and squeezed margins.
He further said that MSME sector is the mainstay of our industrial economy and has been contributing significantly toward the gross domestic product and generation of employment avenues. The need of the hour is to strengthen this sector, so that it can face challenges boldly.
He said the hike in steel prices is indeed a cause of worry, which will further erode the profit margins and thereby reduce the incentives for expending industrial activity in the country. This increase has put MSME Sector at stake by eating away their sizable working capital funds. Exporters will be hit hard due to inability to keep their commitment with foreign buyers.
They appealed and urged upon Prime Minister Narendra Modi, finance minister Arun Jaitley and steel minister Narendra Singh Tomar to roll back customs duty hike on steel products immediately for survival of steel consuming industry which is already reeling under adverse economic scenario.