Mr Paswan urges steel makers to be reasonable
It is reported that Mr Ram Vilas Paswan Minister for Steel, Chemicals and Fertilizers urged the steel industry to continue to support the effort of the government in managing the inflationary trend in the country.
Mr Paswan while delivering inaugural address of the India Steel Conclave said that government does not want the industry to suffer and is concerned about the rise in the cost of the raw materials but industry should ensure that the profit levels are not disproportionate to the rise in cost of production.
He added that a fine balance has to be ensured between the consumer's interest and the interest of the industry.
Mr RS Pandey secretary of steel while speaking at the inaugural session said the Indian government has taken several steps to help reduce the cost of production. He said that "Excise duty has been slashed by 2% in the union budget, import duty on scrap has been removed and 15% ad veloram duty has been imposed on the export of iron ore."
Mr Pandey added that "Besides this, 44% of the steel produced is from captive mines where the cost of iron ore as a proportion of the cost of production is only 5% compared to over 30% for those depending upon spot market for their requirement of iron ore."
Mr Pandey said that "The government and the industry will have to find a way out of the price situation. Industry has to decide a point of balance between the need of the consumers and their price expectation."
The price trend for last one month has been as under.
Change over last 1 month has been 15% to 20%
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