Facing anti-dumping duty, Morbi ceramic industry seeks GoI’s help

Rajkot: The Morbi’s ceramic industry that is facing anti-dumping duty from Gulf countries has urged the union government to intervene and take up the issue at diplomatic level. The office bearers of the Morbi Ceramic Association are trying to convince the government of India to use diplomatic channel with Saudi Arabia to put off the proceedings against Indian industry at Gulf Cooperation Council (GCC).
The representatives of the ceramic industry have urged the government of India to persuade the Saudi government not to impose anti-dumping duty on Indian ceramic products.

Saudi Ceramic Company and other such firms had complained to the GCC, a regional intergovernmental political and economic union consisting of all Arab states of the Persian Gulf except Iraq, alleging harmful practice in international trade specially from ceramic players from India. GCC members include countries are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates (UAE).

When a country feels that the imported products are heavily subsidized by the country of origin or it’s rate is lower than that in the domestic market of country of origin, it initiates the process of imposing anti-dumping duty.

India provides incentives to tiles exporters under the two schemes - Merchandise Exports from India Scheme (MEIS) and Export Promotion Capital Goods (EPCG) under it’s foreign trade policy. The companies in Gulf countries consider these schemes to be heavily subsidizing the exports.

The Morbi Ceramic Association recently provided one year data of five companies demanded by GCC giving details of domestic sale figures, rates, international buyers, international price and other detail.

Based on this data the GCC will decide if anti-dumping duty requires to be imposed and if it decides to impose than what should be rate.

Nilesh Jetparia, president of Morbi Ceramic Association of wall tiles division told TOI, “We had meeting with ministry of commerce and Director General of Foreign Trade (DGFT) to explain them the seriousness of this proceedings with the GCC. We are also planning to send our delegation including officers of commerce ministry, DGFT and few members of our association to make representation before GCC.” Meanwhile, the union government is taking up the issue with Saudi Arabia through Indian embassy, he added.

According to DGFT sources, the exports from Morbi ceramic cluster, India’s largest, was Rs 8,000 crore in 2017-18. This is expected to grow to Rs 10,000 crore at the end of current financial year. Nearly 30% to 40% ceramic products produced in India are exported to Gulf countries.