New Delhi, July 30 -- A Quality Control Order issued by India's steel ministry in June has created significant market disruptions, with smaller firms bearing the brunt of new certification requirements while larger players gain competitive advantages, according to a report released Tuesday by the Global Trade Research Initiative (GTRI).

The QCO, implemented on June 13, mandates Bureau of Indian Standards certification for steel raw materials imports.

Within hours of its introduction, a major domestic stainless steel producer raised prices substantially, having allegedly obtained quality clearances for foreign suppliers prior to the rule's enforcement, GTRI stated in its analysis.

The new certification requirements have particularly imp...