Metal Container Manufacturers’ Association welcomes Government’s move to reduce import duty on steel products
Metal Container Manufacturers' Clan has welcomed the recent annunciation by the Hon'ble Finance Minister for reduction of 5% custom duty for all iron and steel items, including tinplate/ tin-complimentary steel, which is major raw cloth for the metallic packaging industry. The announcement has come very timely, keeping in mind the exorbitant increase past the domestic producers for these products. The local prices have increased up to xx% recently.
The association represents the interest of a large number of MSMEs engaged in the manufacture of tin can containers and closures. Sadly this reduction in the import duty may not assist the metal packaging industry as the exporters of tinplate/ tin-costless steel are not accepting the orders for supplying these materials to India in the wake of applicability of steel and steel products quality control order dated 17 July 2022 which is effective from 17 April 2021.
The association affirms that more measures and support is needed that would help revive the metallic packaging manufacture. The policy makers are silent on the major issue that is going to hit the manufacture seriously that is mandatory imposition of BIS standard on tinplate/tin-free steel and tinplate products like easy open up terminate, peel off ends as per QCO dated 17 July 2020.
The touch is serious as there is a need-supply gap of 2,50,000 tonnes per annum and the metal packaging industry has to fill that gap from imports.
As regards steel products similar easy open up ends, pare off ends, and domes and cones, the industry is primarily dependent on import of such components equally the demand in India does not justify huge capital investment for manufacture of these ends. Metallic Container Manufacturers Association has requested the Regime to prepare a development fund in the shape of a soft loan that can be repaid in 10 years or more at a minimal rate of involvement. This would as well help the industry to movement towards "atmnirbhar Bharat," that is indigenizing components manufacturing both for domestic market too every bit exports.
The industry today is already suffering due to shortage of tinplate/tin can-gratis steel, steel products (like piece of cake open ends), and exorbitant increment in their prices. The tin can cans are used for packing essential products like processed food, edible oil, dairy, and diverse other perishable nutrient products, therefore, the non-availability of can post 17 April 2022 will severely affect the processed food manufacture and also the export of canned food products from India.
Similar kind of quality control orders had too been issued earlier in the year 2008, 2015, and 2022 simply keeping in heed the demand-supply gap, applied difficulties in implementation, and adverse affect and requirement of the MSME sector, particularly in the metal packaging, the Government withdrew the draft QCO on tinplate / can-free steel. The situation has not inverse since then every bit at that place is a demand-supply gap of 2,fifty,000 tonnes per annum.
Finally, if the Government does non look into the issue on priority, it is apprehended that its implementation will seriously affect the merchandise and manufacture engaged in the metal packaging sector and volition result into loss of employment and non-availability of metallic packaging to essential sectors like food and pharma.
Source: https://packagingsouthasia.com/events/reduce-import-duty-on-steel/
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