If government is going to protect steel producers, needs to protect 8 lakh MSMEs too: EEPC Chairman

“MSMEs are not being invited to the ongoing consultations to code trade-related issues faced by the alloy industry. Discussions astir a work hike volition wounded the downstream industry. Our position is straightforward: if extortion is being provided for alloy producers, determination indispensable besides beryllium extortion for MSMEs. You cannot person a concern wherever producers are safeguarded portion the 8 lakh MSMEs are near without support,” Chadha said.

He added that portion the equilibrium sheets of ample alloy manufacturers stay robust, those of astir 8 lakh MSMEs are successful a precarious state. Within EEPC, 50 per cent of export worth is contributed by MSME members, and 60 per cent of its members are MSMEs.

“How volition MSMEs vie with planetary players? The alloy assemblage should beryllium addressed, but not astatine the disbursal of different sectors. For instance, Japanese alloy shipments are presently stuck astatine ports owed to delays successful issuing no-objection certificates (NOCs). These products are unavailable successful India, and shipments person been stalled for the past 3 months,” Chadha said.

Meanwhile, a study by the Global Trade Research Initiative (GTRI) stated that India’s alloy imports are “neither excessive nor unwarranted.” According to the report, fractional of these imports dwell of captious earthy materials for home production, portion 40 per cent are specialised items that India does not nutrient successful capable quantities.

“Despite this, restrictive import policies proceed to stifle the industry. The Steel Ministry’s inefficient processes not lone load businesses but besides hazard exemplifying the challenges of India’s concern environment. Immediate, high-level involution is indispensable to streamline procedures and enactment the maturation of the alloy sector,” the GTRI study said.

Ajay Srivastava, a erstwhile commercialized serviceman and caput of GTRI, argued that India’s ample alloy producers, contempt claiming hardship from imports, person prospered owed to protective policies. He said that home stainless alloy prices are 25–30 per cent higher than comparable imported alloy for definite thicknesses, adjacent aft accounting for duties.

“By monopolising earthy materials and prioritising proviso to their ain downstream ventures, these ample firms person forced galore tiny businesses to close. This monopolistic behaviour warrants probe by the Competition Commission of India (CCI), particularly fixed the grounds profits reported by large players successful caller years,” Srivastava said.