Soda Ash Imports Rise 81% Since FY22, Putting Pressure On Domestic Producers: Report

New Delhi, Nov 14 (KNN) India's growing dependence on imported soda ash is putting pressure on domestic manufacturing capacity and supply chains supporting the clean energy transition, according to a report released on Friday by the Centre for Domestic Economy Policy Research (C-DEP), in collaboration with the Centre for WTO Studies (CWS), Ministry of Commerce and Industry.

Soda Ash Imports Rise 81% Since FY22

Soda ash is a key raw material for manufacturing solar glass used in photovoltaic panels and processing lithium carbonate for batteries used in electric vehicles and energy storage systems.

The report found that soda ash imports increased by 81 per cent since FY2021-22, accounting for 22 per cent of India's demand in FY2024-25, despite sufficient domestic production capacity.

It attributed the increase to global overcapacity, falling international prices and the diversion of surplus production from countries such as the US, China and Türkiye to the Indian market, reported Business Standard.

Rising Dumping Puts Pressure On Domestic Producers

Average dumping increased by 42.8 per cent between FY2022-23 and FY2024-25, adding to pressure on domestic producers and discouraging future investments, the report noted.

C-DEP President Jaijit Bhattacharya said India could not aspire to become a global leader in solar energy and electric mobility while allowing domestic industries supplying essential raw materials to weaken.

He cautioned that continued import dependence could replicate the experience of pharmaceutical intermediates such as Penicillin G, where the loss of domestic production led to reliance on foreign suppliers.

Report Calls For Import Safeguards

The report recommended implementing relevant World Trade Organization (WTO) provisions to impose quantitative restrictions on imports and expediting the initial safeguard import quota of 7.55 lakh tonnes recommended by the Directorate General of Trade Remedies (DGTR).

It also called for improvements in logistics, energy efficiency and raw material security to strengthen the competitiveness of domestic soda ash producers.

(KNN Bureau)