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Intention behind MIP on steel not to give permanent cover - Ms Nirmala Sitharaman

Steel News - Published on Wed, 11 Jan 2017

Image Source: Financial Express
Financial Express reported that Indias’ Commerce and Industry Minister Ms Nirmala Sitharaman said that the objective of imposing minimum import price on certain steel products was not to give a permanent cover to the industry but to stop cheap inbound shipments and that there was a specific reason for imposing MIP on 173 steel items.

She said “Our intention is not to give a permanent cover but (to extend) little help because it was so that the quantum of cheap steel which was coming into the country had to be stopped and where the surge was clearly established, we took this step.”

She added that they were all for short duration.

Giving relief to domestic steel producers against cheap inbound shipments, the government in February 2016 imposed MIP on 173 steel products ranging between $341 to $752 per tonne. It was later reduced to 66 items and then to 19 at present.

Experts have said MIP is not in compliance with global norms and India’s trading partners may raise the issue in WTO. Last month, Japan dragged India to the World Trade Organisation against certain measures taken by New Delhi on imports of iron and steel products. As per the WTO’s dispute settlement process, the request for consultations is the first step in a dispute. Consultations give the parties an opportunity to discuss the matter and find a satisfactory solution without proceeding further with litigation. The meeting is likely in early February

Source :

Posted By : Rabi Wangkhem on Wed, 11 Jan 2017
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