Anti-Dumping Levy Against Calcium Carbide Opposed

The All India Industrial Gases Manufacturers Association has asked the anti-dumping cell of the commerce ministry to take into consideration the shortage of calcium carbide in the country before deciding on a petition seeking levy of anti-dumping duty on the chemical.

There is continuous shortage of domestic calcium carbide and local manufacturers are charging premiums on unanimously fixed prices, the association said in a letter to the anti-dumping cell designated authority.

Stating that the quality of locally available calcium carbide was inferior to imported ones, it said as a result, the per kg yield of carbide was less from locally procured ones. The association was opposing the petition filed by calcium carbide manufacturers - TECIL and Panyam - with the anti-dumping cell.

 

We are forced to pay a premium to the local manufacturers as they usually do not stick to delivery schedule, association secretary Pankaj Gupta said in the letter. Imposition of anti-dumping duty would let local manufacturers continue with high pricing of the chemical, it said.

The high price of calcium carbide was also affecting acetylene production, which was hit by wide use of low cost liquified petroleum gas and poor quality, highly-priced local carbide. To produce one cubic metre of acetylene gas, four kg of carbide is required which would work out to Rs 110 at current levels. This leads to large difference in price between acetylene and LPG, the association said.

Pointing out the closure of diammonium gas plants for 15-20 days in a month for want of calcium carbide when the chemicals import was under restricted list, the association said the gas manufacturing units had stabilised only after imports were allowed under open general licence.

Almost every diammonium gas manufacturer would prefer to use imported calcium carbide either from China or Romania in view of the better grade and quality, it said.

Drawing a comparison between imported calcium carbide from China and locally manufactured ones, the association said said yield from the imported chemical was 300 kg per tonne against 265/270 kg per tonne from locally manufactured ones. The cost for a tonne of imported calcium carbide ranged between Rs 22,000 to Rs 23,000 against Rs 22,100/22,700 for the locally made chemical, it pointed out.