CCP to take up steel export ban

The Cabinet Committee on Prices (CCP), chaired by Prime Minister Manmohan Singh, is likely to meet on Tuesday to discuss the options before the government, including a ban on steel exports and increase of duty on iron-ore export, to control inflation. The Finance Ministry has sent a detailed note for consideration of the CCP. The options also include reducing excise on steel. After the wholesale price-based index (WPI) of inflation for the week ending March 29 touched a 3-year high of 7.4 per cent on Friday, the government announced a ban on cement exports and withdrew incentives on export of steel.

Commenting on the price rise, steel minister Ram Vilas Paswan said here today, “We have recommended a ban on exports of finished steel products completely. This recommendation has gone from my Ministry to the government.” The other recommendations of the Ministry sent to the CCP include a cut in excise duty on the alloy from 14 to 8 per cent, abolition of import duty as well as countervailing duty on steel products, besides imposing a 15 per cent duty on export of iron ore, he said.

He noted that at a time when global steel prices are high, domestic manufacturers tend to focus on exports to cash in on the opportunity at the cost of local consumers. He also warned that even after these measures, if steel producers do not rein in exports and reduce prices, then the government will resort to bringing steel under the Essential Commodities Act. “But we do not want to go to such an extent. We hope the industry will act responsibly,” the minister said. The government has already banned export of non-basmati rice, cement, wheat, pulses.n control measures likely on Tuesday