DGTR proposes 2-year curbs on soda ash imports

The Directorate General of Trade Remedies has signaled its intention to introduce protective measures to curb the influx of soda ash imports. This action responds to an appeal from the Alkali Manufacturers Association of India due to a troubling spike in imports. The proposed two-year quantitative restrictions will allocate specific quotas per country, distributing these annual restrictions in quarterly segments to ensure domestic manufacturers are protected.

New Delhi: The commerce ministry's trade remedy investigation arm, DGTR, has recommended safeguard measures in the form of quantitative restrictions on imports of soda ash, which is used in different sectors such as detergents and textiles, for two years.

The move aims to prevent impact on the domestic industry from a significant increase in imports.

The Directorate General of Trade Remedies (DGTR) has recommended the imposition of duty after the conclusion of a probe in this regard.

An application was filed by the Alkali Manufacturers Association of India (AMAI) on behalf of DCW Ltd, GHCL Ltd, Nirma Ltd, RSPL Ltd and Tata Chemicals seeking imposition of safeguard measures in the form of quantitative restrictions on imports of Soda Ash into India for four years, according to the DGTR notification.

The applicant has alleged that the product is being imported into India in increased quantities, which is impacting the domestic industry.

In its probe, the DGTR has concluded that the imports have increased in both absolute and relative terms.

It has increased by 89 per cent in 2023-24 and has remained at that level since, and the increase is recent, sudden, sharp and significant enough to threaten serious injury, it said.

"...the Authorised Officer recommends the imposition of safeguard measures in the form of quantitative restrictions on imports of the product under consideration...in order to prevent serious injury to the domestic industry and to facilitate its adjustment, for a period of two years," it has said.

It has recommended an import quota for Year 1 at 7,54,992 metric tonnes (MT). The quota for Year 2 should be 7,92,740 MT, taking the cumulative quota for the two years to 15,47,732 MT.

Country-wise, the quota for the USA shall be 1,59,388 MT in Year 1 and 1,67,357 MT in Year 2, aggregating to 3,26,745 MT. Turkey shall have a quota of 1,28,697 MT in Year 1 and 1,35,132 MT in Year 2, totalling 2,63,829 MT. The quota for Iran/UAE shall be 1,10,948 MT and 1,16,495 MT, respectively, with a cumulative allocation of 2,27,443 MT, DGTR recommended.

Similarly, Russia shall be allocated 70,289 MT in Year 1 and 73,803 MT in Year 2, aggregating to 1,44,092 MT. The European Union shall have a quota of 1,17,179 MT in Year 1 and 1,23,038 MT in Year 2, totalling 2,40,217 MT, while Kenya shall be allocated 1,21,847 MT and 1,27,939 MT, respectively, amounting to 2,49,786 MT.

China PR shall have an annual quota of 46,487 MT in Year 1 and 48,811 MT in Year 2, taking the total to 95,298 MT. The allocation for other countries shall be 157 MT in Year 1 and 165 MT in Year 2, aggregating to 322 MT.

"The annual quota of each country shall be allotted in four quarterly tranches...Imports from a country in any quarter shall not exceed its quota for that quarter," it added.