New Delhi — The Associated Chambers of Commerce and Industry of India (Assocham) has asked the government to eliminate trade barriers to imports of flexible polyols to provide a "level playing field to both domestic polyol manufacturers and importers/downstream industry players."
India's chambers of commerce want polyol tariff lifted
The association states in a letter to commerce secretary, Rita Teaotia: “In India there is no dumping of flexible slabstock polyol, 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."
An Assocham document, seen by UTECH-polyurethane.com, puts flexible polyol production in India flat at 20 kT/year between 2012 and 2015, with total production capacity for propylene oxide-based flexible polyols estimated at 70kT/year. The association addedthat on the basis of "inputs from our members that domestic companies have not updated their technology and capacity to cater for total demand in the country." The association's numbers come from IHS' Chemical Economics Handbook, published 30 November 2015.
The association added that: "Due to the introduction of new and advanced technology in China, Europe, Singapore, South Korea and other Asian countries, prices of raw materials fell in the case of imports, while due to inefficiencies in Indian companies, prices of raw materials in India could not complete with the imported raw materials."
“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,” said Rawat.
Assocham adds that it believes that the level of tariffs is making the downstream foaming industry itself inefficient and that this is leading to increased imports of finished foam products.