 "Polyurethane foam image via Shutterstock.")
Assocham has suggested the removal of anti-dumping duty on flexible slabstock polyol, a key raw material for making polyurethane products, as domestic production in unable to meet the demand of the product in the country.
Apex industry body has urged the government to provide level playing field to both domestic polyol manufacturers and importers/downstream industry players by eliminating existing trade barriers being imposed after misrepresentation of facts by certain domestic flexible slabstock polyol manufacturing companies.
“In India, there is no dumping of flexible slabstock polyol, besides 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,” said Assocham in a communication to Commerce Secretary, Rita Teaotia.
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According to D S Rawat, secretary general, Assocham, large parts of the demand of flexible slabstock polyol in India is being catered by imports of raw material due to non-availability of domestically manufactured polyol in sufficient quantity. “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,” he said.
In its note to the Commerce Secretary, Assocham has highlighted that domestic companies have not updated their technology and capacity to cater to total demand in India, besides chemical industry needs material from improved and updated technology as available in international market to keep downstream industry rolling and competitive.
Companies in India have been thrusting their inefficiency on downstream foaming industry by using protective mechanism of safeguard duty which has already started impacting local foam manufacturing companies as is evident from upward trend in import of foams driven by new compact packing technology. “Such misuse of industrial provisions is heavily impacting existence and growth of local foaming industry which has larger stakes in India in terms of investment and employment,” said Assocham.
