State-run Steel Authority of India (SAIL) has sought an increase in import duty on steel to discourage cheaper arrival of the commodity,which has seen a surge in recent times, from countries like China and Ukraine.
The recent rise in domestic demand has made India a favourite dumping destination for global steel mills, SAIL Chairman S K Roongta said, thus extending support to the steel industry's demand for the same in the upcoming Budget.
"(Global) steel mills are looking for some additional outlets, markets (for their products). Since demand in India is still growing obviously India as a market will be targeted. If the government considers raising the protection level by raising the general import tariff, I suppose that would be welcome at this point." Roongta told CNBC TV18.
Import duty on steel at present stands at 5 per cent, which the industry has termed "insufficient" and demanded a 20 per cent duty instead. Industry is also demanding early levy of safeguard and anti-dumping duties to check such imports.
Steel imports have gone up by 6 per cent to 10.57 lakh tonnes in the April-May over the year-ago period.
Even as private steel producers like JSW and JSPL are mulling over increasing prices of their products on firming global cues, SAIL Chairman maintained that an "appreciable increase" in international prices could only prompt all steel firms to hike rates.
Source : Business Standard