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Indian stainless steel sector drowning in Chinese imports

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5 years ago

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The first half of 2021-22 has seen a 185 per cent increase in stainless steel imports compared to the average monthly imports in the last fiscal, creating havoc for the Indian players.

The import tide of stainless steel from China and Indonesia is fast turning into a deluge destroying many companies on its way, and threatening the very existence of the small, medium and micro industries in India. After all, the first half of 2021-22 witnessed a staggering 185% increase in import volumes of stainless steel flat products compared to the average monthly imports in the last fiscal, fuelled mostly by surge in Chinese and Indonesian imports.

The two countries China and Indonesia, which increased their exports by 300 per cent and 339 per cent, respectively, in the first half of this fiscal compared to the average monthly imports of the last fiscal, now have a share of 79 per cent of the total stainless steel flat product imports in the first half of FY22. It is a significant jump compared to the 44 per cent share in FY21. The average per month imports has jumped from 34,105 tonnes per month in FY21 to 63,154 tonnes per month this current fiscal–FY 22.

Indonesia’s imports share, which was virtually non-existent in 2016-17, has climbed to 23 per cent in the first half of this fiscal, with its average monthly exports increasing from 4,355 tonnes/month in the last fiscal to 14,766 tonnes/month in the first half of this fiscal. China’s average monthly exports too has jumped from 10,697 tonnes/month in the last fiscal to 35,269 tonnes/month in the first half of this fiscal.

The surge in imports was the result of the Finance Ministry’s decision of September 30, 2021 to revoke the imposition of CVD on China (September 2017) and end provisional duties on Indonesia (October 2020), which was based on the recommendations of the Director-General of Trade Remedies (DGTR), after a detailed investigation. The investigation had revealed that the two countries were resorting to non-WTO compliant subsidies to boost their exports to India and causing injury to Indian manufacturers.

In fact, the DGTR and their global counterparts had conclusively proved in its final finding that both these countries provide non-WTO compliant subsidies to the tune of 20 per cent to 30 per cent to their stainless steel manufacturers. And, these subsidies have created an imbalance in the Indian and international markets, reduced the competitiveness of Indian products in the domestic industry, causing material injury and persistent financial stress for home-grown businesses. It has forced the domestic industry to seek redressal from the surge in imports.

In fact, in India a disaggregated study of imported products in the first half of the current fiscal also reveals how excessive dumping has taken place in a particular J3 grade of stainless steel in the country. Imports of J3, a subsidised and dumped 200 series grade of stainless steel, with about 1 per cent nickel and 13 per cent chromium from China, has jumped from an average of 1,779 tonnes/month in 2019 to an average of 4,425 tonnes/month in 20-21 (249 per cent increase) and to average 25,346 tonnes to in just six months of 2021-22 (1,424 per cent) increase compared to the same period last year.

The share of this grade in total imports from China increased 23 per cent in 2019-20 to 72 per cent in 2021-22. Much of this import is even below the scrap prices and it hurts the MSME sector, the hardest. Such dumping also means major losses in terms of national exchequer through tax evasion and revenue losses.

This onslaught of Chinese exports to India has decimated the micro, small and medium enterprises (MSME), which had to bear the brunt of the impact. In fact, the imposition of provisional CVD on Indonesia in October 2020 and CVD on China in place from September 2017, had provided a “level-playing field” to these players, which got a much-needed relief from the dumped subsidised imports. The MSME, an industry having the capacity to produce about 1.2 lakh tonnes of hot and cold-rolled flat products, was able to operate at 90 per cent plus capacity utilization between October 2020 to February 2021.

However, the MSME sector suddenly finds itself grasping for breath to survive after the announcements of the 2021-22 Budget. Small-scale stainless- steel rollers and re-rollers, who make ingots from recyclable scrap as the first step in stainless- steel product manufacturing, and then produce hot and cold rolled materials for the all-India market, find themselves swamped by a massive and subsidised surge of imports from China and Indonesia.

Today, more than 80 induction furnaces and 500 patti/patta units, which provides primary raw materials for various downstream industries, are in dire straits. These downstream industries manufacture a variety of stainless steel household goods such as kitchenware, tableware, cooking range, sanitary items, cutlery pots, etc.

Prakash Jain, President, All India Stainless Steel Cold Roller Association, says: “The smaller Indian stainless steel players finds it virtually impossible to compete with the state-subsidised Chinese players, who get an 18 per cent incentive to export, under invoice their products by changing the label of the products to avoid paying duties and sell it at Rs 15 to Rs 17 per tonne cheaper in the Indian market.”

According to Jain, Gujarat has 70 rolling mills, each employing around 300 people and 50 induction furnaces, which makes ingots, the raw material for rolling mills and employs 500 each.

Not only will many of these jobs be lost resulting in massive unemployment but force many manufacturers to turn traders unless the CVD is imposed on imports from China and Indonesia.

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SIP inflows hit record Rs 32,297 crore in August, gold ETF inflows jump 67 pc to Rs 2,596.70 crore: AMFI

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2 hours ago

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September 10, 2026

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New Delhi, Sep 10: Inflows into gold Exchange-Traded Funds (ETFs) surged nearly 67 per cent in August 2026 as investors increased their exposure to the precious metal amid a sharp rise in domestic gold prices, according to the latest data released by the Association of Mutual Funds in India (AMFI) on Thursday.

Gold ETFs received net inflows of Rs 2,596.70 crore in August, compared with Rs 1,559 crore in July. The category recorded positive inflows for the third consecutive month, reflecting continued investor interest in gold-linked investment products.

The increase in gold ETF investments came as domestic gold prices on the Multi Commodity Exchange (MCX) rose 7.7 per cent during August, making the precious metal one of the key investment avenues during the month.

Silver ETFs also continued to attract investors, recording net inflows of Rs 1,270.63 crore in August.

In the equity mutual fund segment, actively managed equity schemes saw net inflows rise to Rs 29,328.62 crore in August from Rs 24,697.39 crore in July, indicating sustained investor participation despite fluctuations in the broader market.

Overall, the mutual fund industry recorded net inflows of Rs 41,353.60 crore in August, significantly lower than the Rs 2.35 lakh crore recorded in July. The sharp month-on-month decline was largely influenced by flows in the debt fund segment.

Systematic Investment Plan (SIP) contributions, however, continued to strengthen and reached a record high of Rs 32,297 crore in August, compared with Rs 31,961 crore in July. The steady rise in SIP contributions highlights continued retail investor participation in mutual funds.

Debt funds registered a net outflow of Rs 8,127.32 crore in August, reversing from a net inflow of Rs 1.87 lakh crore in July.

Meanwhile, the mutual fund SIP inflows increased marginally month-on-month to a record high of Rs 32,297 crore in August, compared with Rs 31,961 crore in July. On a year-on-year basis, SIP inflows rose 14 per cent from Rs 28,265 crore recorded in August 2025.

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Sugar prices curb: Maharashtra sugarcane crushing season set to begin on Oct 15​

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23 hours ago

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September 9, 2026

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Mumbai, Sep 9: Maharashtra Chief Minister Devendra Fadnavis-led high-level committee on Wednesday decided to advance the upcoming sugarcane crushing season for 2026-27 to October 15.

The state government’s decision comes when soaring sugar prices during the festive season have strained household budgets across Maharashtra.

The state government hopes the commencement of sugarcane crushing season from October 15 instead of November 1 demanded by sugar factories will stabilise the market and ensure an adequate supply of sugar.

This marks an earlier rollout compared to previous operational years, following seasons that started on November 1, 2025, and November 15, 2024, respectively.

The meeting was attended by Co-operation Minister Babasaheb Patil, Deputy Chief Minister Sunetra Pawar, former Minister Dilip Walse Patil, along with legislators and representatives from factory associations.

The move comes as retail sugar prices jumped to Rs 70–75 per kg in August due to a domestic supply crunch caused by lower production last season.

Normally, the crushing season commences in November.

However, with major festivals like Navratri, Dussehra, and Diwali approaching—and following advisories from the Central government to top-producing states — the Maharashtra administration decided to begin operations nearly a month early to prevent further price spikes.

The proposed October 15 start date has, however, met with opposition from sugar mill owners and farmers.

Industry representatives said that starting the crushing process before November is financially disadvantageous for both factories and growers due to lower sugarcane maturity and sugar recovery rates at that time of the year.

Despite the pushback from millers, the state government remains focused on controlling inflation and stabilising supply before the peak festive period.

Maharashtra Cooperation Minister Babasaheb Patil said, “The decision to advance the sugarcane crushing season from October 15 was taken in the wake of festive season and also to avoid damage to the standing sugarcane.”

According to crop estimations prepared by the Agriculture Department and MITCON, the state expects sugarcane cultivation across 15.43 to 15.48 lakh hectares.

Total cane production is projected to reach 1,238 to 1,250 lakh metric tonnes (LMT), yielding an estimated 990 to 1,000 LMT of cane for crushing.

Net sugar production is anticipated to hover between 96.45 and 97.58 LMT at a net recovery rate of 9.75 per cent, after diverting nearly 15 LMT of sugar equivalent toward ethanol production.

Reviewing the performance of the preceding 2025–26 crushing season (as of August 31, 2026), official records revealed that 210 sugar mills (102 cooperative and 108 private) processed 1,045 LMT of sugarcane.

Minister Patil said that the arrears payable by the sugar mills towards Fair and Remunerative Price are of the order of Rs 200 crore.

He added that the state government is taking action against such mills for clearing the dues.

He told that these mills won’t be entitled to get crushing license for the upcoming season.

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Cabinet okays 5 railway projects in south India at total cost of Rs 10,021 crore

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1 day ago

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September 9, 2026

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New Delhi, Sep 9: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved five multitracking railway projects with an investment of Rs 10,021 crore.

The five projects, covering 17 districts across Tamil Nadu, Andhra Pradesh, Karnataka, and Telangana, will increase the existing network of Indian Railways by about 540 km. The multi-tracking projects will enhance connectivity to approximately 2,121 villages, with a total population of about 52 lakh.

These projects include the Arakkonam–Renigunta 3rd and 4th Line over a stretch of 77 km, Whitefield–Bangarapet 3rd and 4th Line, 47 kms, Hosur-Omalur Doubling, over 147 km, Salem–Karur–Dindigul Doubling, amounting to 159 km, and Secunderabad (Ghatkesar)–Kazipet, extending to 110 km, according to an official statement.

The increased line capacity will significantly enhance mobility, resulting in improved operational efficiency and service reliability for Indian Railways. These multi-tracking projects are poised to alleviate congestion and are scheduled to be completed by 2029-30.

The projects are planned under the PM-Gati Shakti National Master Plan with a focus on enhancing multi-modal connectivity and logistics efficiency through integrated planning and stakeholder consultations. These projects will provide seamless connectivity for movement of people, goods, and services.

The approved capacity enhancement will improve rail connectivity to several prominent tourist destinations across the country, including Tirupati, Subramaniya Swamy Temple (Tiruttani), Sri Padmavati Ammavaari Temple (Tiruchanur), Kotilingeshwara Devaalaya, Sri Seethi Byraveshwara Swamy Temple, Bangaru Tirupati, Kolar Gold Fields, Hogennakkal Falls, Hosur Fort, Mettur Dam, Kodaikanal Hills, Sathyamangalam Wildlife Sanctuary, Namakkal Anjaneyar Temple, Namakkal Fort, Kalyana Pasupatheswar Temple, Yadagirigutta Temple, Bhongir Fort, Surendrapuri, and Swarnagiri Temple.

These projects are also essential routes for transportation of commodities such as coal, cement, iron and steel, containers, automobiles, food grains, petroleum products, fertilisers, etc. The capacity augmentation works will result in additional freight traffic of magnitude 47 MTPA (Million Tonnes Per Annum). The Railways, being an environment-friendly and energy-efficient mode of transportation, will help both in achieving climate goals and minimising logistics costs of the country, reduce oil imports by around 8 crore litres and lower CO2 emissions by 42 crore kg, which is equivalent to the plantation of around 2 crore trees, the statement added.

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