The government on Thursday extended the minimum import price (MIP) only on 66 steel products till October 4. The earlier MIP, which was on 173 products, ended on August 5.
The MIP is on imports from 6 countries namely Japan, Korea, Russia, Indonesia, China and Brazil and will protect the industry against cheap imports.
Of the 173 products, MIP will be on 66 products and rest of the products will come under anti-dumping duty, which has been in place for 5 years, says Aruna Sharma, Steel Secretary.
MIP is a short-term solution only, she adds.
While the World Trade Organization (WTO), which does not favour MIP, might raise objections, the extension was needed to uplift the Indian industry.
The idea behind two months MIP extension is to ease all products under anti-dumping duty in the future, Sharma says adding that the anti-dumping levy will be on difference between the production cost and landing cost.