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In favour of Quality

By Guest Author,

Added 25 June 2015

Why are Steel Associations and Federations opposing proposed Quality Control Order? asks Mohan Gurnani, President of Federation of Associations of Maharashtra & Chairman of The Bombay Sugar Merchant Association Ltd.

BIMA (Bombay Iron Merchant Association) in its letter to Narendra Tomar, Union Minister of Steel, also highlighted how current global and national quality compliance mandate are in place and have effectively played vital role in maintaining in good quality of imports.

The letter stated, "Quality compliance is most easily achieved by mandating globally accepted and renowned 3rd party inspection agencies to certify all steels, which the ministry feels relevant, for their quality compliance when entering this country.

"The Central Boiler Board which is heading the Dept. of Explosives and certifies quality for steel utilized in the most critical application follows this practice from 4 decades. No one has ever complained about the same, not any quality issue raised."

This order is forecasted to not just affect the cost and quality of the production from the local suppliers, but also affect the international relations in a negative way.

More recently, FII (Federation of Industries of India) in its letter to Steel ministry stated, "...the proposed Quality Control Order, 2015, if not withdrawn by the Steel Ministry, would have a massive adverse impact on our international trade relations as no foreign country or their companies, would go for cumbersome BIS registration procedure for the sake of exporting small quantities of steel, occasionally to a few engineering companies in India."

Further emphasizing on this point, the letter said, "The foreign companies are equally competent to introduce same kind of non-tariff restrictions on export from India. Under such restrictions, how our PM's ‘Make In India' programme would become a success here, if other countries stop our exports through similar non-tariff restrictions."

With steel companies from China are expanding their production overseas due to their merits in quality and effective pricing, merchants also demand government to relook at competency of the Indian suppliers in India was to compete globally.
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