Another blow for the Metal packaging industry


The 10,000 Crore Metal Packaging Industry which is already distressed with the implementation of the Quality Control Order (QCO) is now irked by yet another decision of the government as Steel sector does not come under the ambit of RoDTEP scheme.

To boost exports, the government announced rates of tax refunds under the export promotion scheme RoDTEP for 8,555 products, such as marine goods, yarn, dairy items. But as per media reports three sectors of steel, chemicals and pharmaceuticals would not get the benefit of RoDTEP as they have “done well without” incentives.

The Metal Packaging Industry, however, does not resonate with the recent move of the government. “Considering the market is already favouring the steel industry in terms of the demand, yet much is dependent on government policies, especially at a time when the industry is going through one of the toughest times at the moment due to the implementation of the Quality Control Order (QCO) on tinplate which is main input for metal packaging industry.

Making the situation worse is the fact that even the ‘RoDTEP scheme, does not favour the steel sector. It will surely be a setback for the Indian metal packaging industry which is a downstream product of steel U/Chapter 72/73 of HSN code.

Metal Container Manufacturers’ Association (MCMA) therefore highlights the need for urgent action since metal packaging is 100% recyclable, environment friendly and a sustainable packaging material, therefore, the government should include the steel sector in the RoDTEP scheme. 

Considering the current state of affairs, MCMA on behalf of the industry has requested the ministry to include the steel sector in the ‘RoDTEP scheme’.

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