Govt will cut steel prices within 30 days: Steel Secy

In a bid to contain steel prices, the government has just met with leading iron ore producers in the capital. The rationale is that lower iron ore prices will mean lower steel prices, and thus a control on inflation. But the steel secretary has said there is no proposal to ban iron-ore exports to keep prices in check. There is also no proposal to levy ad valorem duty on exports either. The government will meet primary, secondary steel producers over next two days.

Union Steel Secretary, RS Pandey said "there are proposals under considersations. we have asked them to get back with their proposals"

Iron ore is one of the most critical inputs in steel and to that extent, the government wants to ensure that if not reduction in prices, then at least the price line is held by iron ore producers in the country, the major ones at least. So that when it comes to steel prices, there is no upward pressure on steel prices.

The government is concerned and the Finance Minister has expressed his concern yesterday about sky rocketing steel prices. One of the ways the government may want to arrest this price trend is to ensure that the critical input, iron ore, is actually arrested in terms of price rise.

"Export of iron ore and steel should be discouraged. The government will also meet primary and seconday steel producers over the next few days to cut prices" added Ram Vilas Paswan, Minister For Steel.

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