The FM had reduced the custom duty on scrap from 5 per cent to nil, while Central Value Added Tax (CENVAT) on all goods has been reduced from 16 per cent to to 14 per cent. “This could have brought down the prices by Rs 1,500 per metric ton approximately, but the reverse has happened. We are not able to understand the reason for it,” said Charanjit Singh Vishvakarma, president of United Cycles Parts and Manufacturers Association.

Talking to Newsline, Arvind Rai, senior vice-president of Northern India Chamber of Commerce and Industry, “The reduction in excise duty by 2 per cent has meant little. Steel producers have rather increased the prices, because the FM did not even touch the topic of price regulatory mechanism to control steel prices.”

Rai pointed out that steel prices can be controlled only if the export of iron ore is stopped. “On the other hand, export of iron ore has increased by 9 per cent within the last six months. On one hand, the government is saying that reserves of iron ore will finish within 40 years. And at the same time, they are also allowing export of iron ore,” Rai observed.

United Cycles Parts and Manufacturers Association has called for an urgent meeting on March 4, to discuss the Union Budget and the steel prices. Members say further course of action regarding the prices will be decided after the meeting. They highlight that prices of steel have increased from Rs 40,000 per ton, to Rs 41,500- 41,800 per ton.