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Chemical Industry Seeks Higher Duties On Chinese Imports

Updated: Nov 27, 2023 04:32:52pm

Chemical Industry Seeks Higher Duties On Chinese Imports

Ahmedabad, Nov 27 (KNN) The cheaper raw material supply from China is posing a major challenge on Gujarat’s chemical industry and is making it difficult for local manufacturers to compete in the domestic market.

Speaking exclusively with KNN India, Prashant Patel, Director, Prashant Industries said that dumping of Chinese products and raw materials has created a big challenge for domestic manufacturers as we are struggling to compete in our own market.

“We need government to intervene in this matter by restricting dumping of cheap Chinese imports and imposing higher duties on them,” said Patel who also serves as the President of Federation of Indian Micro and Small & Medium Enterprises (FISME).

Since the last two year manufacturers are dealing with this issue which is impacting production, he said further warning that if the situation remains unaddressed employment will be impacted because industries will have no option but to shut down.

Gujarat's chemical industry is facing a tough challenge due to cheaper raw material supply from China. According to sources, some finished products are being supplied at par with raw material prices by China while many have very less price difference. 

India's chemical trade deficit has also increased to USD 17 billion in 2022-23 which had a trade surplus of USD 3 billion in 2020-21. China is lowering its inventory before its new year season and it may further affect prices.

According to 2022 data, China exported USD 300 billion worth of chemicals while India's chemical export was at USD 65 billion in the global market.

Gujarat is the hub of India's chemical industry with a 35% share in the country's chemical and petrochemical exports and 41% share in India's chemical production. 

Gujarat has a turnover of USD 31.5 billion in chemical industry. Chemical is the largest contributor to Gujarat's industrial output with more than 24% share.

(KNN Bureau)


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