In a move that could further raise the prices of rubber, the government of India has decided to continue with anti dumping duty on import of rubber chemical from China and Korean republic for another one year up to 2014.
The petition was filed by Mumbai based National Organic Chemical Industries Limited, Mumbai which accounts for almost 50 per cent of the total domestic production as per the petition filed with the commerce ministry.
There are three other producers, namely Lanxess India Pvt. Ltd., PMC Rubber Chemicals India Pvt. Ltd. and Merchem Ltd.
The antidumping duty was imposed earlier on this product in 2008 and then in 2011 upto May 2013.
In the domestic market, rubber prices have been going up consistently since beginning of June 2013 and currently hovering around Rs 190 per kg , up by eight per cent over one month.
Rubber chemical is used for processing of both synthetic and natural rubber for further use in manufacturing of use articles like tyre and other elastic items.
The Indian manufacturers of rubber goods especially tyres have been importing large quantity of the rubber chemicals which would turn expensive post this duty imposition.
Incidentally, All India Rubber industries Association in its pre budget memorandum had demanded an withdrawal of anti dumping duty on raw materials like rubber chemical and carbon black. It had stated that levy of anti-dumping duties on carbon black & rubber chemicals has made the Indian rubber products more expensive. With high interest cost and energy rates many of SME units had to close their shutters.
According to the order of the antidumping authority, material injury has been caused to the Indian rubber chemical industry primarily through imports from China and Korea.
Petitioner - NOCIL had claimed that the intensity of dumping had been damaging to the extent that while some of Indian producers have substantially exited from manufacture of rubber chemicals and turned traders, resorting to imports of rubber chemicals, others have started importing intermediates from China.
The antidumping authority holds that growth of the domestic industry was positive in respect of each of the subject rubber chemical up to 2005-06. However, growth became negative thereafter.