ISSDA calls for removal 5% import duty on ferronickel - 21 Jan, 2009.

PTI reported that Indian Stainless Steel Development Association has sought removal of 5% import duty levied on ferronickel.

In a letter to Mr Pramod Kumar Rastogi union steel secretary, it said that 5% duty imposed on ferronickel as part of the tariff levied on ferroalloys used in making products like stainless steel should be removed as the raw material was not produced in the country.

Mr NC Mathur president of ISSDA said that "Ferronickel is central to stainless steel making. The raw material is not available in the country. To maintain a competitive scenario, it should be made available at nil duty."

He added that "Moreover, in view of large imports of stainless steel at low prices, we request the steel ministry to ask the finance ministry to consider the customs duty for ferronickel items at nil level."

Meanwhile, Indian Ferro Alloy Producers Association said that it is actually needed as ferronickel was a 100% imported item in the country.

Nickel prices in the international market is hovering in the range of USD 10,500 a tonne to 13,000 per tonne. The domestic manufacturers have to bear an additional cost of INR 2,400 a tonne on account of the duty.