Commerce ministry for 20% safeguard duty on soda ash

The Ministry of Commerce has recommended to the Ministry of Finance for a 20 per cent safeguard duty on soda ash, a major ingredient for detergents, to protect the domestic industry from cheaper imports from China.

Safeguard duty is a temporary protectionist measure, which is brought in for a certain time-frame to avert any damage to the domestic industry from cheap imports.

“We have approved imposition of 20 per cent safeguard duty on soda ash against cheap imports from China and waiting for the approval of the finance ministry,” Commerce Secretary G K Pillai told reporters here at IIFT convocation.

He said it would be notified by the finance ministry soon.

The Directorate General of Safeguards, Customs and Central Excise (DGS), which investigates problems pertaining to cheap imports, had recommended the commerce ministry to slap the duty.

The application has been filed by Alkali Manufacturers Association of India on behalf of companies like Tata Chemicals, Birla Sagar, Nirma Ltd and Gujarat Heavy Chemicals.

The DGS has said that the share of imports from China in relation to domestic production has increased from 0.44 per cent in 2005-06 to 2.59 per cent in April-September 2008-09.

“Therefore, the share of imports from China has increased sharply to 10.13 per cent,” DGS said in its notification.