Utensil makers oppose quality norms on steel
Manufacturers and exporters of stainless steel utensils and
cutlery in India are opposing the recent curbs imposed on the import of
different types of so-called ‘substandard’ stainless steel.
Why?
According to them, the move will result in a shortage of raw
material and push up costs for the sector. This, they warned, could in turn
lead to closure of several firms in the sector due to non-viability of
operations, thereby causing large-scale unemployment.
Background:
The government recently brought out the quality-control order. The
order prohibits manufacture, storage, sale and distribution of stainless steel
products that do not conform to the standards specified in that order and which
do not bear the ‘Bureau of Indian Standards (BIS)’ mark (given after obtaining
a licence from the BIS).
- The move is also aimed to prevent ‘poor quality’ steel imports from countries, including China. It is applicable on various grades of stainless steel plate, sheets and strips used for utensils as well as for low nickel austenitic stainless steel sheet and strips used in kitchen appliances and utensils.
- The quality control order was imposed over and above the minimum import price (MIP) ranging from $341 to $752 per tonne on 173 steel products to protect local steel manufacturers from a surge in cheap imports of steel.
The MIP, which was imposed on February 5 is in place at least until
August 4. In March, the government had also extended the safeguard duty (of 20%
that will gradually drop to 10%) on steel imports till March 2018.
