The Hindu Business Line : Duty slapped on soda ash imports from China

New Delhi, Nov. 8 The Finance Ministry has imposed 20 per cent safeguard duty on all soda ash imports from China as part of its efforts to help maintain a healthy domestic soda ash industry in the country.

The move is also aimed at ensuring a steady and reliable source of di-sodium carbonate (popularly known as soda ash) to the downstream user industry. Soda ash is one of the main inputs for manufacture of detergents and flat glass.

This final safeguard duty has been levied for a period of one year from the date of the provisional safeguard duty, which means that the final duty would remain in force up to April 19, 2010.

Exports of soda ash from China to the US and Europe have been significantly hit in the aftermath of the global financial crisis, leaving significant surpluses with Chinese producers. This had made India an attractive market for such surpluses.

Imports continue

In the first quarter of 2009-10, soda ash imports into India from China surged to 1,10,329 tonnes as compared to 10,046 tonnes in the same quarter in 2008-09 and 2,256 tonnes in 2007-08.

The Alkali Manufacturers’ Association of India (AMAI) — on behalf of Tata Chemicals Ltd, Gujarat Heavy Chemicals Ltd, Saurashtra Chemicals Ltd, DCW Ltd and Nirma Ltd — had filed the petition seeking a safeguard duty on soda ash imports from China. The industry body contended that increased imports of soda ash from China had threatened to cause market disruption to domestic industry.

The Director-General (Safeguards) on October 6 this year recommended the imposition of final safeguard duty of 20 per cent. A provisional safeguard duty of 20 per cent was imposed from April 20 this year, but the DG (Safeguards) noted in the final findings that this had not stopped imports.

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