The Government is attempting to lower Steel, Plastic, and Cement prices.

The government announced a series of tariff reductions aimed at lowering iron and steel, coal, and plastics prices, as well as a pledge to more than double fertiliser subsidy allocations to help farmers cope with the impact of the Ukraine war.

In addition to lowering import duties on iron and steel, the finance ministry increased import duties on a variety of steel goods, which will aid user industries and small-scale players that have been complaining about price increases. Finance Minister Nirmala Sitharaman stated that better logistics would be used to increase cement availability and price.

“Despite the difficult international circumstances, we have ensured that essential items are not in limited supply.” Even some prosperous countries were not immune to shortages and disruptions. While announcing the measures, she tweeted, “We are committed to keeping costs of basic commodities under control.”

Food, fuel, and commodities have been the main price rise drivers in recent months, with the problem exacerbated by disruptions caused by the Russia-Ukraine conflict.

User industries have been complaining for months about a massive rise in steel and plastic prices, blaming the increase in input costs on Covid-related restrictions in various regions of the world. Some of these manufacturers also wanted a price cap, which the government refused.

In the case of steel, the Centre has sought to reduce customs duties on coal and other inputs in the hopes of lowering production costs and passing the savings on to consumers. At the same time, a 15-50% export duty (which has been increased in some cases) is in place to discourage the export of iron ore, pellets, and various steel products from the country.

Sitharaman stated that the government will grant an additional subsidy of Rs 1.1 lakh crore over and above the budgeted amount of Rs 1.05 lakh crore for fertilisers. The Union Cabinet approved a plan last month to enhance the phosphate-based fertiliser subsidy from Rs 21,000 crore to Rs 61,000 crore for the kharif season (April-September), despite reports that the subsidy bill could be in the range of Rs 2.25-2.5 lakh crore this year.