Gujarat's Chemical Exports Decline Due to Strict Pollution Rules

Ahmedabad, Aug 21 (KNN) Gujarat, India's leading chemicals manufacturer and exporter, is facing a significant challenge as compliance with hazardous waste regulations has led to an 8.20 per cent decline in exports for 2023-24.

The state's chemicals sector, which accounts for 58 per cent of India's chemical exports, saw its export value drop by USD 2.9 billion, contributing to the country's overall decline of USD 3.3 billion.

The downturn is largely attributed to Gujarat's strict enforcement of Rule 9 under the Hazardous and Other Waste (Management and Transboundary Movement) Rules, 2016, issued by the Central Pollution Control Board (CPCB).

Rule 9 mandates that companies using hazardous waste as raw material must obtain authorisation from competent authorities.

While other states allegedly bypass this rule, Gujarat’s stringent adherence has led to delayed production cycles and higher costs, putting its industries at a disadvantage.

On Tuesday, industry leaders from associations like the Gujarat Chamber of Commerce and Industry (GCCI), FICCI, Chemexcil, and the Gujarat Dyestuffs Manufacturers' Association (GDMA) met with Union Minister Anupriya Patel in Ahmedabad to address these concerns.

Ankit Patel, Senior Vice President of GDMA, highlighted that Gujarat is the only state experiencing a decline in volumetric exports, largely due to the strict implementation of Rule 9 since 2019.

Additionally, industry representatives raised concerns about the Comprehensive Environmental Pollution Index (CEPI), which has classified many of Gujarat's industrial clusters as critically polluted, restricting their expansion and competitiveness. Despite repeated appeals, the CEPI scores have not been reassessed.

The union minister assured the industry of exploring solutions to these issues, emphasising the need to support Gujarat's vital chemicals sector despite these regulatory challenges.

(KNN Bureau)