Government Prunes Export Benefits: Steel, Ores, and Meat off the List
The re-launched interest subvention scheme has excluded Harmonized System Codes accounting for 25 per cent of the exports.
Chennai: Iron and steel and their semi-finished derivatives, fertilizers, pulp of wood, metallic and non-metallic ores and animal meat have been excluded from the interest subvention scheme announced by the government.
The re-launched interest subvention scheme has excluded Harmonized System Codes accounting for 25 per cent of the exports. The major HS codes left out include iron and steel in Chapter 72, from raw forms like pig iron and ferro-alloys to semi-finished products, flat-rolled items, bars, rods, wire, and various stainless and alloy steels.
In FY24, iron and steel exports accounted for $11.8 billion and the shipments valued $9.2 billion in FY25.
“Chapter 72 has been completely left out despite having a major contribution from MSME exporters. Hope that the government will consider this chapter in their future revisions,” said Pankaj Chadha, chairman, EEPC.
Other chapters that have been excluded from the scheme include pulp of wood or of other fibrous cellulosic material, waste and scrap paper or paperboard.
Chapter 31 covers fertilizers, encompassing animal and vegetable fertilizers, mineral and chemical nitrogenous, phosphatic, and potassic types, as well as mixed fertilizers with NPK or other elements.
Ores, slag, and ash, including various metallic ores of iron, copper, nickel, zinc, tin, etc, precious metal concentrates, uranium and thorium ores, titanium ores, and wastes like slag, ash are covered in Chapter 26.
Chapter 24 covers tobacco and manufactured tobacco substitutes, including unmanufactured tobacco, cigars, cigarettes, other manufactured tobacco like smoking mixtures, and newer products for nicotine inhalation will not receive interest subvention.
Chapter 2 of HS Code covers meat and edible meat offal, including fresh, chilled, frozen, salted, dried, or smoked bovine, swine, sheep, goat, horse, and other animal meats. Chapter 1 covers live animals, including horses, cattle, swine, sheep, goats, poultry, and other mammals, birds, reptiles, and insects. These two chapters also have been excluded from the scheme.