Indian Steel industry impels the government of India to increase import duty and imposition of countervailing duty on steel items in order to examine the cheap arrivals of the commodity from abroad.

Steel Industry has come out with the proposed wish at a time when Indian Government is preparing to reveal another package to boost demand.

Due to global economic slump, major steel companies from China and Ukraine started selling their piled up stocks in India in bulk quantities, which motivated domestic manufacturers to urge Indian Government for imposition of import duty.

Mr. S K Roongta, chief of Steel Authority of India Limited, urged the Government to impose an additional 10% import duty on steel items, apart from 10% countervailing duty on TMT bars and a special additional duty of 4% to save domestic industry.
 
According to sources, the Government imposed 5% import duty on steel products, which according to the officials of steel industry is an inadequate to check dumping of the commodity in the domestic market.
 
On this, Ispat Industry official stated that as part of package to boost demand, the government should impose at least 20% import duty among other measures.

Jindal Steel and Power Director, Sushil Maroo, said the Government to further trim down excise duty, apart from abolishing Central Sales Tax on steel.  

Steel prices have touched a high of $1,250 a tonne earlier this year and are now hovering around $550 mark.
 
Steel demand from infrastructure and automobile industry declined as they were hit by the global dismal economy and liquidity crunch in the market. The package is expected to infuse growth in ailing sectors to increase steel offtake.