Steel wears thin
Steel prices have risen by 49 per cent in the last one year. The government is contemplating a ban on futures trading of iron and steel to curb the spurt.
Union steel minister Ram Vilas Paswan also sought the ban of export of finished steel to ensure availability to domestic users. Commerce Minister Kamal Nath warned that if the states failed to rein in inflation, not only would futures be banned for iron and steel the industry could be brought under the Essential Services Maintenance Act.
However, the industry warns that the country would lose a foreign exchange of Rs 20,000 crore annually if exports were banned. It says steel export constitute only 6-8 per cent of the total production. There have also been requests to the prime minister to set up a regulator, abolish import duty and impose export duty of 10 per cent.