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Export Ban Will Damage Industries
Posted by Pradeep Sadanapalli | April 17, 2008 | 209 views
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Loading ...Industry analysts say a ban on steel and cement exports can seriously hurt both the industries. The government on Wednesday charged these industries with forming a cartel and vowed to take measures to check spiralling prices.
“The cement and steel manufacturers are behaving like a cartel. If their behaviour does not change, we will not hesitate to take tough measures,” he said.
He said inflation has gone up because of rise in international prices of commodities, apart from speculative activities in the market.
However, the steel and cement manufacturers refused to respond to the charges. “We will not respond,” the Indian Steel Alliance president, Mr Moosa Raza said.
JK Cement Group executive president, Mr R.G. Bagla, also declined to comment on the allegations of cartelisation.
The association representatives and officials of Ambuja Cements, Dalmia Cement and Lafarge could not be contacted.
Meanwhile, the industry chamber Assocham said the ban on steel export will have serious repercussions as the industry will not only lose international market but will also attract huge litigations in courts abroad.
The steel ministry is in favour of a ban on exports of finished steel products to contain the rising inflation. Ministry officials say that at a time when global steel prices are high, domestic manufacturers tend to focus on exports to cash in on the opportunity.
Assocham president, Mr Venugopal N. Dhoot said, its ironical that the country continues to export iron ore with a nominal export tax and the endproduct steel is being banned.
However, Federation of Indian Mineral Industries secretary-general, Mr R.K. Sharma, said, that as the iron ore is in over supply in the country and steel is in short supply therefore its ban is justified. Mr Sharma said the global steel prices are less than the domestic prices.
He alleged that a few steel companies have formed a cartel and are charging higher prices.
Assocham said that steel export is not more than six per cent of the total production. A significant part of the steel exports consist of products which don’t have a domestic market.
“The export markets are established with considerable efforts. If exports are banned, buyers shift to other markets and India will lose its exports.”
SOURCES:
Deccan Chronicle
Topics: Public Concerns, Construction, Govt In Action |
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