(MENAFN- KNN India)
New Delhi, Nov 27 (KNN) Indian steel importers are facing significant disruptions as steel shipments remain stuck at ports, incurring heavy detention charges and delaying commercial activities.
According to Ariyoshi, a key industry voice, Japanese companies are particularly affected, as repeated communications to the Indian Ministry of Steel have yet to resolve the situation.
He warned that without prompt action, steel imports from Japan could remain suspended indefinitely, exacerbating the trade crisis.
Indian traders have reported that several steel containers have been held up at Indian ports for nearly two months, adding to the mounting concerns over rising detention costs.
These delays coincide with intensified lobbying by large Indian steel companies, which are pushing for stricter import controls to curb the inflow of cheaper steel.
However, small and medium enterprises (MSMEs) have opposed such measures, arguing that domestic steel prices are significantly higher.
“We've sought relief from both the Department for Promotion of Industry and Internal Trade (DPIIT) and the Ministry of Steel, but we are not receiving necessary approvals (NOCs), especially for steel not produced in India or unavailable at competitive prices,” said one anonymous trader.
While some authorities pressure importers to buy from domestic manufacturers, traders argue that inflated prices due to cartel-like behaviour by some companies present a serious challenge for small businesses.
The issue has worsened with India's import surge, which reached USD 60 billion in September-its highest level in over a year. Delays are particularly problematic for smaller players, who are incurring substantial losses from both shipping and detention costs.
Experts, including Ajay Srivastava of the Global Trade Research Initiative (GTRI), pointed out that the Steel Import Monitoring System (SIMS) and Quality Control Orders (QCOs) designed to protect domestic industries have instead resulted in confusion and increased costs.
The mandatory Bureau of Indian Standards (BIS) approvals for certain steel products are often delayed, further complicating clearance processes.
India's steel trade data highlights a growing imbalance. While the country exported USD 21.8 billion worth of steel in FY24, it imported USD 23.7 billion, reflecting challenges in the core steel segment.
Imports of flat-rolled and specialty steels, used in advanced industries like defense and aerospace, have been a major driver of this deficit.
(KNN Bureau)
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