Do away with anti-dumping duty on flexible slabstock polyol: Industry body to Govt

New Delhi, May 24 (KNN) The government should provide a level playing field to both domestic polyol manufacturers and importers/downstream industry players by eliminating existing trade barriers being imposed after misrepresentation of facts by certain domestic flexible slabstock polyol (FSP) manufacturing companies, an industry body told Commerce Secretary Rita Teotia.

“In India there is no dumping of flexible slab stock polyol, besides domestic production is not enough to cater to local demand as such there should be no safeguard duty imposed on import of flexible slabstock polyol from Thailand,” said The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in a communication to Teaotia.

FSP is imported from several countries, and mainly from Singapore, Netherlands, the US, Korea RP, Thailand and Taiwan.

It is a polyether and on reaction with catalysts and additives yields polyurethane foams used in pillows, bolsters, upholstery, mattresses, transport seating and packaging. 

“Large parts of the demand of flexible slabstock polyol in India is being catered by imports of raw material due to non-availability of domestically manufactured polyol in sufficient quantity,” said D.S. Rawat, secretary general, ASSOCHAM.

The association pointed that the import of raw material is extremely critical for flexible polyurethane industry in India which otherwise would impact existence and growth of domestic industry and labour engaged in polyurethane foam manufacturing.

In its note to the Commerce Secretary, the industry body highlighted that domestic companies have not updated their technology and capacity to cater to total demand in India, besides chemical industry needs material from improved and updated technology as available in international market to keep downstream industry rolling and competitive.

Companies in India have been thrusting their inefficiency on downstream foaming industry by using protective mechanism of safeguard duty which has already started impacting local foam manufacturing companies as is evident from upward trend in import of foams driven by new compact packing technology.

“Such misuse of industrial provisions is heavily impacting existence and growth of local foaming industry which has larger stakes in India in terms of investment and employment,” said Assocham.