Having hit by the imposition of Minimum Import Price (MIP) on steel, Punjab-based engineering industry, especially the Micro, Small and Medium Enterprises (MSMEs), have appealed to the Centre to roll back it or direct the Indian steel makers to reduce the price of raw material at December 2015 level for their survival.

They have requested the Central government to come out with a compensatory mechanism to make up for the increased raw material price for engineering industry.

Avtar Singh, President, Chamber of Industrial and Commercial Undertakings (CICU), said the Central government in December 2015 imposed MIP on 173 steel products ranging between $341 and $752 per tonne to deter cheap imports from China, Russia, Japan and South Korea. He said the MIP is hitting the engineering exports which have declined by around 20% during the last fiscal.

“Steel majors are hiking the price of raw material every month between Rs 1,200 and Rs 1,500 per tonne and it is a cause of concern for the MSME industry. This has hit the industry hard and put the MSME sector in a quandary. It is also eating into the MSMEs working capital funds. Engineering exports, startup projects as well as ‘Make in India’ campaign are also suffering significantly. This has come as a jolt to the exporters who have been worst hit and are unable to keep their commitments with overseas buyers,” he said.

 Source: The Tribune