The Indian government’s Export Parity Price (EPP) scheme, launched to help MSME exporters offset high steel safeguard duties, has seen weak adoption over the past two months. Announced shortly after the 12 per cent provisional safeguard tariff on select steel products, its uptake remains minimal, according to insiders and industry bodies.
Under the plan, MSME exporters are to receive hot-rolled coil (HRC), cold-rolled coil (CRC), wire rods, and alloy rounds at export parity prices directly from major steel producers. However, despite the scheme’s intentions, neither the Engineering Exports Promotion Council (EEPC) nor steel mills have reported significant volumes supplied under the initiative.
EEPC chairman Pankaj Chadha noted the limited appeal arises partly because only a narrow range of steel grades is covered. He also highlighted the absence of a centralised portal for tracking supply, making it difficult to assess uptake: “Steel mills have been asked to provide steel supply data which has not been received till date”. Domestic prices of covered steel products remain lower than export parity rates, discouraging MSMEs from opting into the plan.
A senior steel industry executive, speaking anonymously, echoed this sentiment: “The scheme offers export parity rates, but domestic steel prices are already subdued,” adding that MSMEs see little incentive in switching to the EPP scheme. Although HRC prices temporarily rose to ₹52,850 per tonne following the safeguard duty, they have since eased to around ₹51,300.
Conversely, Corona Steel’s MD Arun Kumar Garodia defended the scheme, stating that any MSME in need can procure steel through it, though he acknowledged the lack of detailed usage reports.
As India relies on steel-intensive sectors such as engineering and manufacturing for MSME growth, the limited traction of the EPP initiative raises questions about its design and implementation. Observers suggest broadening the scheme to include more steel grades, lowering export parity thresholds, and establishing transparent mechanisms like a centralised portal to improve accessibility and its overall effectiveness.
