China Imposes Duty On Guar Exports.

Guar gum exporters from India are at a distinct disadvantage. China has imposed customs duty of 7% and 15% on guar exports from India, the world's largest exporter. But import from Pakistan is duty free. This preferential treatment is costing India in global market share.

The guar splits and guar powder attract a duty of 7% and 15% respectively. China accounts for 25% to 30% of the total exports of guar gum splits. Due to the higher duty on guar powder, India's exports to China is decreasing while exports of refined guar gum splits is increasing.

Guar gum refined split is refined endosperm derived from guar seed or cluster bean. Guar gum refined spli is mechanically separated from guar seed which yields 28-30% of refined split.

PK Hissaria, managing director of Sunita Hydrocolloids, said: "Many manufacturing units have come up in China over the last several years to manufacture the value-added finished guar gum powder from refined guar gum splits. Due to this duty disparity, China has been able to compete Indian guar gum powder manufacturers in the world market. This has put Indian guar gum powder manufcaturers at a disadvantage and also reduced the exports of value-added products like guar gum powder."

Guar gum industry feels that Indian guar gum is qualitatively superior to guar gum in Pakistan. "Pakistan exports guar gum products to China at a nil duty. Parity in import duty levied by China for guar gum exported by India and Pakistan will enhance export of about Rs 300 crore of Indian guar gum," said Debjani Roy, executive director of Shefexil. There is also a disparity in the export duty structure of sesame seeds.

Source : economictimes.indiatimes.com