Budget overlooks plight of stainless steel industry: ISSDA

KOLKATA: Indian Stainless Steel Development Association ( ISSDA), a stainless steel industry body has said that the union budget 2017-18 has overlooked the plight of stainless steel industry. Basic Customs Duty on finished products has been not increased inspite of continued surge in import of stainless steel products into the country.

While it welcomed the move to remove basic customs duty on nickel it pointed out that a major part of the stainless steel industry's demand for nickel is met from Ferro nickel and stainless steel scrap. Both ferro nickel and stainless scrap, key raw materials for stainless steel manufacturing attract a import duty of 2.5%.

A surge in imports of stainless steel products has seen the industry struggling. It was thus expecting an increase in basic customs duty on finished goods from 7.5% to 12.5% (at par with carbon steel). On Wednesday, an ISSDA statement urged the finance ministry to relook the budget provisions and abolish duty on key raw materials while increasing duty on stainless steel finished goods.