Mumbai ,
“ The Stainless Steel Products Quality Control Order (QCO) 2016 notified by Steel ministry on June 10, 2016 makes Stainless Steel producers and importers to register their products with BIS. The government order has led to shortage of imported raw material and has created monopoly of a single stainless steel manufacturer in the country. Apart from this BIS order The Government has imposed about Seven different anti dumping duties and Initiation of Countervailing Duty / Anti-subsidy investigation “ said Mr Mr Manoj Kunango ,Chairman, Excise and Customs ,Metal & Stainless Steel Merchants Association (MASSMA) in his letter to the steel minister.
“ With so much protection to single stainless steel producer namely Jindal Stainless limited (JSL) including Anti dumping , Safeguard , BIS restrictions and now investigation on anti circumvention , Users and buyers are left with hardly any options to buy from anywhere else and hence there chance to compete in local and global market are virtually finished . Their opportunity to compete globally and domestically is almost over and The chances of them getting knocked out and closure of the market and most of the end users of stainless steel both high end and medium down stream industries are on verge of closure thus generating unemployment” said Mr Kunango. .
“ The current scenario and confusion created by quality control order has resulted in no availability of BIS standard stainless Steel currently in market which can be checked on grounds and hence the businesses will be paralyzed for few months in absence of the materials. It looks shortage of raw material is going to create panic of unimaginable chaos and panic. MASMMA demands government to have re-look at the Stainless Steel Quality control order and go by the international standards equivalent to Indian standards.” Said Mr Kunango.
“MASSMA has urged the Minister to control domestic stainless steel prices after the implementation of Quality Control order Jindal Stainless, the largest manufacturer having BIS registration has increased Rates of Popular Grades like 304 and 316 .”he added.
“We have requested the Union Steel Minister to review the whole situation with ground realities and not generalise stainless steel with carbon steel category as Stainless steel being such expensive product – it is not that importers will import any size just for sake of it needs to be bought with right dimensions. Various Ministry orders and protectionism has led to utter chaos as there are hardly any other sources to get materials from.” Said Mr Kunango.
“The entire implementation of Stainless Steel Products Quality control order is a Hogwash as it does not seem to match with the objective of Improving Quality, Securing Health & Safety of Citizens of india. It has only led to creation of MONOPOLY in favor of One Industrial House. We have requested The Steel minister to order a Survey to any of the Independent Agency (Indian and International) to Analyze & Collect Suggestion, Views & Comment from the Industry, SME, MSME, USER Industry, Trade and Service Providers across the India and implement BIS Quality Control Order in a phased manner which helps the Industry to grow, provide better quality products to the Indian consumers.” Added Mr Kunango.
