India’s ferroalloy industry has urged the government to impose a customs duty of at least 10 per cent on ferroalloy imports.
The industry produces over 2 million tonnes of ferroalloys each year but at present is estimated to be running at a little over 60 per cent of capacity and has suffered from a fall in domestic demand due to an increase in cheaper imports.
The Indian Ferro Alloy Producers’ Association said that imports have risen more than five-fold in value progressively as the government gradually reduced the import tariff on ferroalloys from 25 per cent in 2003-04 down to zero in 2008. During that time imports have shot up from Rs2.63 billion in 2003-04 to Rs13 billion from April to December 2008.
The Association also pointed out that electricity costs are some three to five time more expensive in India than in other ferroalloy-producing countries, again putting domestic producers at a disadvantage.
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