Kolkata, May 23: In the wake of rising input costs, especially primary steel, the Government’s decision to remove import duty on raw materials for steel would lower the cost for the domestic steel industry and therefore lower the prices, according to EEPC India chairman Mahesh Desai.
” Engineering goods manufacturers and exporters would benefit from the move and become more competitive in the global markets,” opined Desai on Monday.
He said that increase/imposition of export duty on iron ores and a host of steel intermediaries would increase the domestic availability of the key industry inputs.
“Downstream exporters feel primary steel products prices will fall by 10 pc for primary producers and 15 pc for secondary steel producers,” Desai said.
Hailing the actions taken by the Government, EEPC India chairman said that reduction in auto fuel prices would ease off logistics costs which have been hurting the sector for quite some time.
“All the steps together would not only help the industry beat the surging input costs but also improve liquidity. We welcome the government decision and greatly appreciate the timely response,” Desai said.
“Rising inflation has emerged as a major headache for policymakers world over. Persistent elevated price poses serious risk to demand and growth. The latest decision of the government should partly neutralise the negative impact of surging raw material prices,” he added.