Exports of guar splits to China, a worry

There is flight of raw material (guar splits) from India to China, according to the guar industry.

“We have been opposing this from the very beginning,” Dilip Soni said.

China has developed a full-fledged guar processing industry. Guar splits (raw material for guar gum powder) is being exported without restraint to that country which offers finished products in return at almost the same price as here.

Dual import policy This goes against the grain of the ‘Make in India’ theme, Soni said.

China also follows a dual import duty policy: while guar splits face lower duty, guar gum powder imported from India faces a higher duty.

China imports guar splits and guar gum powder duty-free from Pakistan, the second biggest player.

All derivatives and high-value products of guar are being made outside India whereas all the raw material is going from here.

“We are not only loosing on technology import but also millions of dollars in the form of foreign exchange earnings. Guar has been a ‘net foreign exchange’ earner for the Centre,” Soni said.

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