Steel, crude soy oil to attract import duty;inadequate say cos

NEW DELHI: The government on Tuesday imposed customs duty on various iron and steel products and crude soyabean oil but both the industries termed the move as inadequate to protect domestic companies from cheaper imports.

While the iron and steel products such as pig iron, semi- finished products, sheets and rods will attract a customs duty of five per cent, imports of crude soyabean oil will become costlier by 20 per cent, said an official release. The duty comes into effect from today.

Terming the move to slap five per cent import duty on steel products as inadequate, Ispat Industries Vice-Chairman and Managing Director Vinod Mittal said "we were expecting a higher import tariff" as the industry faces the threat of cheaper imports from countries like China and Ukraine.

Commenting on imposition of 20 per cent duty on crude soyabean oil, the Indore-based Soyebean Processors Association Coordinator Rajesh Agrawal said "the step is in the right direction but it is not complete unless the government imposes similar duty on crude palm oil and refined edible oils too".

The government has imposed duties on iron and steel products and soyabean oil "in wake of the recent fall in the international prices of commodities and with a view to safeguard the interests of domestic producers," the release added.

The government had seven months ago abolished import duty on steel and crude soyabean oil as part of the inflation management exercise.