Posted on 19 Sep 2024
The Federation of Coimbatore Industrial Associations (FOCIA) has expressed its concern over the Indian Ministry of Steel’s proposal to increase the basic customs duty and has urged the government to reconsider its stance, Kallanish notes.
The trade body has sent a letter to the steel and heavy industries minister, HD Kumaraswamy, requesting him to reconsider the proposed duty hike.
FOCIA notes price volatility concerns and possible challenges in fulfilling orders at current price levels as the reasons for the concern about it impacting micro, small and medium enterprises (MSMEs). FOCIA is a Coimbatore-based common trade body that includes 23 industrial associations. MSMEs have an annual turnover of INR 2.5 billion ($29.9 million).
It adds that MSMEs are the key raw material purchasers, who convert this into components which are then supplied to larger industries. Increasing the import duty will hinder MSMEs’ ability to survive in the current market.
“If the import duty is hiked, small industries that have accepted orders based on the current steel price will face difficulties in executing orders,” FOCIA is quoted as saying by the Times of India.
The body requested the government set a "maximum selling price" annually for various basic metals such as steel, aluminium and copper to help protect MSMEs from price volatility. It also urged a "price monitoring committee" be set up which also includes MSME representation.
Source:Kallanish
