ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Exporters Starved of Steel

Exporters Starved of Steel (From a Special Correspondent) DURING the latter half of July the Engineering Export Promotion Council (EEPC) had discussions with the Union Steel Ministry on the growing shortages of steel felt by exporters of engineering goods. The EEPC wanted to impress upon the Government the need to augment steel supplies so as to stem the slackening trend in engineering exports. But, instead of getting an assurance from the Ministry that all possible effort would be made to increase supplies of steel to exporters, the EEPC was told that emphasis should be laid on encouraging exports of items that have a relatively high value added component. The Secretary to the Steel Ministry argued that engineering exporters should try to adjust to the steel shortage by increasing manufacture and export of items with relatively low steel content. He mentioned some engineering goods like steel pipes and tubes which have a lower value added ratio and a high steel content and export of which, he felt, would aggravate the steel shortage. He almost warned engineering exporters that unless manufacturers of products with high steel content made efforts to shift to new lines, the Government might be forced to review its steel allocation to them. Subsequent reports suggest that the Government is thinking of actually banning exports of galvanised tubes, black and bright bars and nuts and bolts.

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