The Federation of Punjab Small Industries’ Association (FOPSIA) has opposed the proposed anti-dumping duty on HR coils and HR sheets and requested the Prime Minister to order an inquiry into the working of the Commerce Ministry regarding the decision.
The government has decided to impose anti-dumping duty of $557 per tonne on imports of certain steel products from six countries, including China, Japan and Korea.
FOPSIA president Badish Jindal said the anti-dumping duty would badly affect millions of small steel manufacturers. He said the knee jerk move has been taken to benefit 10 big steel companies only.
Jindal alleged that on the request of steel manufacturers including Jindal Steel, ESSAR Steel India, TATA Steel Ltd., RINL and SAIL, the Ministry of Commerce initiated an inquiry against the import of HR coils and HR sheets and proposed an anti-dumping duty from 474$ to 557$ on various kinds of HR coils and sheets to be imported from China, Korea, Japan, Indonesia, Russia and Brazil.
He said if the government failed to defer the decision, it would increase the prices of HR coils in the domestic market from 40 to 50%. The HR coil and sheets are used for making almost all kinds of engineering goods such as auto parts and bicycle parts.
‘It will put an end to Skill Development Mission’
The FOPSIA president said in the absence of anti-dumping duty on finished goods, the kneejerk move will lead to increase in imports of finished products as anti-dumping duty has been imposed only on raw material.
Jindal said: “The move will ruin the local small scale industry and put an end to Prime Minister Narendra Modi’s much ambitious Skill Development Mission.”
“Bicycles are manufactured almost from HR sheets. The decision of the government will badly affect more than a million small steel consuming companies and only 10 companies will earn huge profits. This move of the government will adversely affect the industries of India as the domestic steel prices will increase which will lead to import of finished goods from other countries,” he said.
“It is indeed shocking that the Ministry of Commerce is hardly interested in imposing the anti-dumping duty on finished product such as bicycle, fasteners, electrical and auto parts. FOPSIA has requested the PM to defer this proposed anti-dumping duty and further requested to initiate an inquiry,” said Badish
Essar Steel India, Steel Authority of India and JSW Steel had jointly filed an application before the Directorate General of Anti-Dumping and Allied Duties for the initiation of anti-dumping investigation concerning the import. They requested the government to levy anti-dumping duty on the imports from these countries.