Following a petition filed by Alkali Manufacturers' Association of India, the government in June this year imposed anti-dumping duty on caustic soda, a chemical used in textile processing and dyeing. The anti-dumping duty ranges from 'nil' to $48.39 per dry tonne depending on the producer and country of export (China or South Korea).
“With the levy of anti-dumping duty on caustic soda, the local industries will benefit immediately. But now, the local producers will hike selling prices as much as the import duties,” Jim Rogers, chairman of Rogers Holding Ltd and author of 'Street Smarts – Adventures on the Road and in the Markets' told Fibre2Fashion.com
On being asked about the scenario of demand for caustic soda in India being higher than its supply, he said that the local manufactures will eventually add supply. But in the meantime, the excess demand will be met by higher-priced imports, and all consumers will have to suffer higher prices.
Opposing the levy of anti-dumping duty, Manikam Ramaswami, chairman and managing director of Loyal Textiles commented, “In my opinion, we should not have anti-dumping duties on any product that is made by only a handful of manufacturers, as it leads to cartelisation and increased prices.”
“If there is any genuine dumping and if more than 25 per cent of the country's requirement is coming from imports (to an extent dumping happens), the few domestic manufacturers who make that product may be given direct subsidies based on sales output,” he suggested.
India has an estimated annual caustic soda manufacturing capacity of three million tonne. It imported 550,000 tonne caustic soda in 2014-15 compared to 400,000 tonne in 2013-14. (MCJ)
Fibre2Fashion News Desk - india
Textiles | On 26th May 2017
There's a new eco-friendly fibre on the anvil—Austrian speciality...
Apparel/Garments | On 26th May 2017
The first quarter revenue of fiscal 2017 at apparel marketer PVH Corp ...
Surat dominates foiling, embossing and pleating
'In export markets, the trend in terms of embroidery, is towards matte...
Indian fashion market is growing at a staggering rate
Nature Works LLC
Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...
Schlegel und Partner
Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...
Technical Absorbents Ltd
Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...
<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...
"Now we can see the Russian trend in international fashion. And Russian...
Somaiya Kala Vidya
Among the many honours showered on Frater, including Fulbright and Ford...
Textiles | On 25th May 2017