The domestic steel packaging industry has sought withdrawal of 5 per cent import duty on tin plate and related metals, saying the levy would increase the prices of their products, raising the possibility of shifting to alternative packaging materials.

“Survival of the industry is at stake. We want the government to roll-back the import duty on tin plate and tin-free steel required by the packaging industry,'' Metal Container Manufacturers Association Vice-President, Mr Sanjay Bhatia said.

The government, earlier this month, had levied a five per cent import duty on steel products, which hitherto included tin plates and tin free steel, to protect domestic industry from the cheaper arrivals from China and Ukraine.

The Rs 3,000-crore packaging industry, which directly and indirectly provides employment to millions of people, sees the business shifting to alternate packaging industries, resulting in many job losses.

“It is too early to talk about the exact job loss but we can say that the industry survival is at stake here. There is a threat of business shifting to alternate packs,'' Mr Bhatia, who is also the MD of metal packaging firm Rexam HTW, said.

The industry already feeling the heat of the global economic slowdown and the pressure of depreciating rupee against the dollar have also demanded reduction in excise duty on tin plate to 8 per cent from 14 per cent.

Tin plates, considered being the backbone of the steel packaging industry, still continues to rule high in the domestic market, with prices rising by 60 per cent to about 73,000 a tonne since January 2008.

“The domestic tin plate producers should reduce the prices following the decline in steel prices,'' Mr Bhatia added. - PTI