MUMBAI, June 28: The All India Glass Manufacturers' Federation expects that the upcoming Budget would scrap the 7.5 per cent customs duty on soda ash, which constitutes 30 per cent of the cost of production.
“Higher cost of inputs like soda ash is one of the major factors contributing to higher cost of glass bottles. There are few major manufacturers of soda ash in India. They rule the market by fixing prices in line with the landed cost of imported soda ash ,” AIGMA spokesperson Mr Sanjay Jain said here.
Scrapping of customs duty would reduce the landed cost of soda ash which would result in bringing down the prices by indigenous manufacturers. “The custom duty on imports of soda ash is 7.5 per cent now. It should be abolished,” Mr Jain said.
Tata Chemicals and Gujarat Heavy Chemicals are the leading producers of soda ash in the country producing around 10 lakh tonnes per annum. Nirma produces nine lakh tonnes a year followed by Saurashtra Chemicals at 4.5 lakh tonnes a year.
India's total import of soda ash during 2008-09 was just over four lakh tonnes. China docked two lakh tonnes and 80,000 tonnes came from Kenya among others.
Source : Business Line