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Govt extends MIP on 66 steel products till 4 December

05 Oct 2016 Evaluate

In order to support the domestic steel industry, the government has decided to extend the Minimum Import Price (MIP) regime on 66 steel product by another two months till 4 December. The 66 products include semi-finished products of iron or non-alloyed steel, flat-rolled products of different widths, bars and rods.

The Directorate General of Foreign Trade, under the ministry of commerce and industry, notified that “As per the applicable laws and powers conferred to the department by the government of India, the period of MIP has been extended on 66 steel products by two months till 4 December.”

Government in February had imposed MIP, ranging between $341 to $752 per tonne on 173 steel products for a period of six months, in order to guard domestic steel producers against cheap in-bound shipments. Later, to save the domestic steel industry from cheap imports, especially from China, the government in August decided to extend the MIP on 66 steel products for a period of two months as against 173 items earlier.

Indian Steel Association (ISA), had asked the government to extend minimum import price (MIP) on certain products by saying its imposition has marginally improved the industry’s viability after a long period of subdued prices. Accelerating imports at predatory prices from steel surplus countries like China, Japan and Korea have been a major concern area for the domestic industry since September 2014.

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