The Indian Engineering Export Promotion Council (EEPC) has urged the government to introduce a provision that allows steel consumers in the micro, small, and medium enterprise (MSME) segments to procure steel at 'export parity prices'. This move, they say, will help make India’s engineering products globally competitive. The EEPC's recommendation comes in response to the recent proposal for a 12% safeguard duty on steel imports announced on March 19.
According to the EEPC, many domestic steel producers export steel at prices lower than local sales prices. To maintain competitiveness in the global market, the council recommends that industries geared towards exports be allowed to source steel at export prices.
Additionally, the EEPC suggested the introduction of a Tariff Rate Quota (TRQ) system, which would allow low-duty imports within specified limits. The safeguard duty would only apply to imports beyond the quota. Drawing from the EU model, the council also proposed country-specific quotas to avoid overreliance on any single steel supplier.
EEPC Chairman Pankaj Chadha highlighted concerns over domestic price escalation, stressing the need for a TRQ price benchmark to maintain price stability and prevent steep hikes. This would help ensure affordable raw material supply for India’s engineering and manufacturing sectors.
EEPC India has expressed its commitment to continuing dialogue with the government to balance the interests of both domestic producers and downstream industries, fostering a fair and competitive market.
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