Need to impose safeguard duty on imports of caustic soda.

The spate of imports in caustic soda has increased by nearly 80 per cent in the first quarter of 2009-10, on an year-on-year basis, rendering domestic chlor alkali production unprofitable, claimed Alkali Manufacturers’ Association of India (AMAI). The imports of caustic soda in the industry had declined below 5,000 metric tonne (mt) per month (last year’s average was 11,000 mt per month) after imposition of anti-dumping duties on various sources resorting to dumping.

The imports have, however, now surged to 20,000-25,000 mt per month in last couple of months and quantity booked in the month of May and June 2009 with delivery up to July 2009, is about 85,000 mt, which is bleeding the entire caustic soda industry in the country. Indian chlor alkali industry comprises 36 manufacturing units producing caustic soda and chlorine, which are basic raw materials for various industries. Keeping in view the demand and supply situation in India, there is already surplus domestic capacity and with surge of low-priced imports, capacity utilisation has come down to only 70 per cent.