Japan Flags Steel Import Delays at Indian Ports, MSMEs Raise Concerns

The Embassy of Japan has voiced concerns over prolonged delays in steel consignments at Indian ports, citing customs requirements for No Objection Certificates (NOCs) as a major bottleneck. Japanese firms face mounting detention costs, with NOCs suspended since September 2024, disrupting imports. Despite lobbying, no resolution has been achieved, affecting $18.6 billion in FY24 steel imports, especially advanced industries needing specialty steels.

Indian importers echo frustrations, citing bureaucratic hurdles that inflate costs and delay operations. Micro, small, and medium enterprises (MSMEs) argue restrictive import policies favor large domestic steelmakers, creating cartels that inflate prices. Importers demand policy consistency and fair pricing to ensure business viability.

The Steel Import Monitoring System (SIMS) and Quality Control Orders (QCOs) further complicate imports, requiring extensive documentation and BIS registration. Trade experts say customs misinterpret these rules, indiscriminately demanding NOCs, leading to confusion and added expenses.

India’s FY24 steel trade deficit highlights challenges. Imports of core steel surged to $18.6 billion, while exports dropped to $11.9 billion. Domestic shortages and reliance on expensive imports impact industries like defence and aerospace. Policies protecting domestic producers unintentionally burden smaller manufacturers reliant on affordable imports.

The Ministry of Steel has yet to respond to queries, while the Commerce Ministry defers the issue to the Steel Ministry. As delays persist, stakeholders seek balanced policies that align domestic production capabilities with industry needs.