DECEMBER 20248STEEL MINISTRY MANDATES BIS CERTIFICATION TO COMBAT LOW-QUALITY STEELVFP IMPORT SURGE DRIVING DOMESTIC MARKETS UNSTABLE, SAYS IPMATOP STORIESThe Indian Paper Manufacturers Association (IPMA) has raised concerns about the surge in imports of virgin fibre paperboard (VFP) from countries like China and Chile. They argue that these imports, often priced below production cost, are severely impacting the domestic industry.In the first half of 2024-25, VFP imports have tripled compared to the previous year, reaching over 30,000 tonnes per month in August and September. This significant increase, which accounts for over 20 percent of total domestic demand, is straining the profitability and return on investments of domestic manufacturers.The situation is further exacerbated by the impending threat of large-scale imports from Indonesia, where recent capacity expansions are primarily aimed at exports.Domestic manufacturers have ambitious plans to invest Rs 20,000 crore to capitalize on the growing VFP market, which is projected to reach Rs 25,000 crore by 2030. However, these investments are at risk due to the influx of cheap imports.To address this issue, IPMA has urged the government to intervene and create a level playing field for domestic manufacturers. By taking appropriate measures, the government can protect the interests of the domestic industry and ensure its sustainable growth. The Indian government has taken significant steps to safeguard the domestic steel industry from the influx of low-quality imports. Recently, the government has identified instances where importers have attempted to circumvent quality standards by subtly altering steel grades. The government has implemented a robust quality control regime to ensure that only high-quality steel enters the Indian market. This includes mandatory BIS certification for most steel grades and the requirement of a No Objection Certificate (NOC) from the Steel Ministry for grades not covered by BIS standards.By implementing these measures, the government aims to protect domestic steel producers from unfair competition and ensure the supply of high-quality steel to various sectors of the economy. This is crucial for the growth of key industries like construction, infrastructure, and manufacturing, which rely heavily on steel as a key input material.Moreover, the government's initiative is expected to stimulate innovation and technological advancement within the domestic steel industry. By promoting the production of high-value-added steel products, the government aims to enhance India's position as a global steel powerhouse.
< Page 7 | Page 9 >