Budget Wishlist: Industry Bodies Seek Export Ban, Import Duty Cut

Domestic steel makers under the aegis of Confederation of Indian Industry (CII) have sought reduction in basic customs duty on key raw materials like anthracite coal, metallurgical coke, coking coal, and graphite electrode in the upcoming Union Budget 2021.

The non-availability of these items in good quality and quantity hinders the growth of the steel industry, CII said.

CII argued that availability of anthracite coal, the basic customs import duty on which is 2.5 percent, is falling which might force steel industry to become dependent on imports.

CII has also suggested cutting import duty on metallurgical coke to 2.5 percent from 5 percent now.

“Low ash metallurgical coke, HS Code 2704, is a key raw material in steel accounting for almost 46 percent of the total raw material cost. Reduction in duty will help the domestic steel industry to be cost-competitive,” it said.

The industry body has also suggested removing 2.5 percent import duty on coking coal reasoning that domestic supply of coking coal being insufficient, most of it has to be imported.

“The reduction will also help to rationalise the duty structure on met coke, which is the end product of coking coal,” it added.

CII also sought greater availability of graphite electrode, a major consumable for steel sector by abolishing import duty of 7.5 percent.

With 60 percent of domestic production being exported, domestic steelmakers are forced to import. “High duty merely increases the cost burden,” CII said.

Indian Steel Association demands iron ore export ban

Indian Steel Association has written to Prime Minister Narendra Modi, explaining that the metal price hike was due to surging raw material costs, and demanded a ban on iron ore export for six months.