Russia-Ukraine War: Centre Extends Discounts For MSME Sector Amidst Soaring Steel Prices

The Union Steel Ministry has sought discounts for the micro, small and medium enterprises (MSME) as steel prices continue to soar amidst the Russia-Ukraine war.

“Prices are deregulated and is decided by demand and supply,” union minister RCP Singh was quoted in a report by the Economic Times (ET).

He added, “We had discussions with steel companies and they have agreed to provide a discount of Rs 2,000 to Rs 2,500 per MT to the MSME sector.”

“Ukraine and Russia together exported about 55 MT steel to various countries across the globe. This supply has been disrupted due to the war and hence there has been a price increase of 5% to 7%,” Singh further opened up on the issue.

Meanwhile, the ministry is also in talks to bring about a policy for the secondary steel sector. It is expected to encourage the production of specialty steel that is used in the auto, space and drone sectors.

The secondary steel industry makes up 45 per cent of the country’s steel production and contributes to 50 per cent of the sector’s job market. India imported steel worth Rs 42000 crore and secondary steel can reportedly help in bringing it down in the coming years.