IFAPA Seeking 10-12 % Safeguard on the Imports of Ferro-alloy Goods

The Indian Ferro Alloy Producers' Association (IFAPA) is seeking measures to safeguard and protect the Chhattisgarh ferro alloy producers saying that the unavailability of raw materials, cheap imports, and high-power tariffs is hurting the ecosystem.

IFAPA has urged the government to take protective measures to safeguard the Chhattisgarh ferro-alloy industry, amid concerns over cheap imports of finished ferro-alloy goods from Malaysia.

Manish Sarda, Chairman, IFAPA said "the ferro-alloy industry is battling a slowdown for the last five years as a result, some key industry players were forced to shut down their units. The Malaysian government is providing electricity to ferroalloy manufacturers at a subsidized rate, which is giving them an edge in the international market. Hence the increased imports of manganese alloy from Malaysia are expected to further bring down the profitability of the domestic players."

In India, a significant increase in the import of ferro-alloy from Malaysia can be seen as Malaysian ferro-alloy makers can produce goods at a much lower cost. Power is a major input for producing ferro-alloys and it constitutes about 40-70% of the total cost of production. According to IMFPA, power tariffs in India are on higher sider (even after getting power at subsidized rates) compared to other ferro-alloy producing nations.

He further said that IFAPA appeals to the government for a level playing field for the domestic industry by adding an import duty of around 10-12 % on imports of finished alloy, reducing duty on imports of raw material from present 2.5 % to nil, and sought availability of cheaper power to make the ferro-alloy industry competitive in India.

Other pertinent issues faced by Chhattisgarh ferro-alloy producers are:-

-- Inconsistency in the supply of manganese ore

-- Land-lock problem, import of manganese ore costlier as compared to the industries located near the port: Vizag, West Bengal, Andra Pradesh, and Telangana among other states.

-- Cost of coal too high, though the majority of industries in Chhattisgarh have their captive power plants

-- Costlier and insufficient power tariff, partly subsidized by the state government for non-captive power producers