The
Union government has re-imposed five per cent steel duty on pig iron, semi-finished, flat and long steel products. The move is aimed to help domestic steel industry from the impact of global financial crisis. Steel prices in the international market have significantly declined and its demand is also reduced due to down fall in real estate and automobile sector. Government has also imposed 20 per cent import duty on crude soybean oil which would be effective immediately.
Earlier, steel industry demanded 10 per cent import duty on steel products to discourage steel import by domestic industry. Cheep import rate is causing huge losses to steel producers across country due to decline in demand. Steel Authority of India Ltd (SAIL) and JSW registered 25-30 per cent demand reduction amid global slowdown. Low demand and cheap import forced steel producers to impose production cut by 25-30 per cent.
Industry seems unhappy with government's move and said that Ukraine and China are offering steel at much lower prices. There is a difference of about Rs 10,000 per tonne between imported and domestic steel prices.
