CFL makers may hike prices following Centre`s anti-dumping duty

Centre mulls duty on imported components.

Saving power could turn a costly affair. With the union ministry of commerce proposing around 40 per cent anti-dumping duty on imported components used in compact fluorescent lamp (CFL) manufacturing, companies making the products are likely to pass on the hike to consumers.

CFL manufacturing companies are mulling to increase prices by 40 per cent, which may lead to a drop in the sales, believe many. Presently, there are around 20 companies manufacturing CFL.

The commerce ministry had introduced a 35 per cent anti dumping duty on CFL in 2002. Consequently, manufacturers had started assembling CFL by importing components.

“Power saver lamps have helped save energy a great deal. However, if the government burdens the industry with anti-dumping duty, imports of component will turn more expensive. Companies will have no choice but to pass on the burden to the consumers. This may lead to drop in sales,” says Jaysukhbhai Patel, managing director of Ajanta group, a leading CFL manufacturer.

According to him, the country’s CFL market is pegged at Rs 1500 crores—around 15 crore lamps are sold in the country every year.

“CFL manufacturers across the country are united in opposing the anti-dumping duty. The increase in CFL prices is almost certain if the duty is imposed,” says a senior official of Philips Electronics India Ltd., another leading manufacturer of power saver bulbs, adding that the price rise will undoubtedly affect sales.

Industry sources say only two companies manufacture glass tubes required in CFL. The rest import glass tubes and will be hit directly.