Metal Container Manufacturers’ Association welcomes Government’s move to reduce import duty on steel products
Metal Container Manufacturers' Association has welcomed the contempo announcement by the Hon'ble Finance Minister for reduction of 5% custom duty for all fe and steel items, including tinplate/ tin-gratuitous steel, which is major raw material for the metal packaging industry. The announcement has come very timely, keeping in heed the exorbitant increase by the domestic producers for these products. The local prices have increased up to 20% recently.
The clan represents the involvement of a large number of MSMEs engaged in the industry of tin containers and closures. Sadly this reduction in the import duty may non assistance the metal packaging industry as the exporters of tinplate/ tin can-free steel are non accepting the orders for supplying these materials to India in the wake of applicability of steel and steel products quality command order dated 17 July 2022 which is constructive from 17 April 2021.
The association affirms that more measures and support is needed that would assist revive the metal packaging industry. The policy makers are silent on the major issue that is going to hit the industry seriously that is mandatory imposition of BIS standard on tinplate/tin-free steel and tinplate products like easy open up terminate, skin off ends equally per QCO dated 17 July 2020.
The bear on is serious as there is a demand-supply gap of two,fifty,000 tonnes per annum and the metal packaging manufacture has to fill that gap from imports.
As regards steel products like piece of cake open up ends, peel off ends, and domes and cones, the manufacture is primarily dependent on import of such components equally the demand in India does non justify huge capital investment for manufacture of these ends. Metal Container Manufacturers Clan has requested the Government to set upward a development fund in the shape of a soft loan that can be repaid in 10 years or more at a minimal rate of interest. This would likewise aid the industry to motility towards "atmnirbhar Republic of india," that is indigenizing components manufacturing both for domestic market besides as exports.
The manufacture today is already suffering due to shortage of tinplate/tin-complimentary steel, steel products (like like shooting fish in a barrel open up ends), and exorbitant increase in their prices. The tin cans are used for packing essential products like candy food, edible oil, dairy, and various other perishable nutrient products, therefore, the non-availability of can post 17 April 2022 will severely touch the candy food industry and likewise the export of canned nutrient products from Republic of india.
Similar kind of quality control orders had besides been issued earlier in the year 2008, 2015, and 2022 but keeping in mind the demand-supply gap, practical difficulties in implementation, and adverse impact and requirement of the MSME sector, particularly in the metallic packaging, the Government withdrew the typhoon QCO on tinplate / tin can-free steel. The situation has not inverse since then equally at that place is a need-supply gap of 2,50,000 tonnes per annum.
Finally, if the Government does not look into the issue on priority, information technology is apprehended that its implementation will seriously touch on the merchandise and industry engaged in the metal packaging sector and will result into loss of employment and not-availability of metallic packaging to essential sectors like food and pharma.
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Source: https://packagingsouthasia.com/events/reduce-import-duty-on-steel/
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