Chinese curbs may hit Gujarat pigment makers

AHMEDABAD: Pigment manufacturers fear that they will lose about 50% of their exports to China, due to the anti-dumping duty, ranging from 15% to 82%, imposed by Beijing on phthalocyanine pigments exports from India, with most of these companies being based in Gujarat.
Industry experts say these companies got revenues of around Rs 3,200 crore from China, but this number will now halve. However, quality-conscious buyers will continue to use Indian products, the experts said.
Chemexcil chairman S G Mokashi said, "China has imposed an anti-dumping duty on phthalocyanine pigments ranging from 15% to 82%. This will hurt our companies and exports will fall by 50%. Gujarat-based industry associations have raised the issue with the government and we are also taking the matter to the commerce ministry."
Natu Patel, MD of Meghmani Organics, said, "It will definitely hurt pigment manufacturers of the state. India always had an advantage over China in reactive dyes and pigments because of our availability of resources, research and development, expertise and also the final application of pigments is better in our products.
Our products were cheaper than China's and we were able to export to that market in good quantities. Now, with China imposing the duty exports will reduce by 50%. However, our quality is better and quality-conscious buyers in China will continue to use our pigments." He added that the duty will cost his company about Rs 50 crore of exports to China.
According to industry players, the Chinese duty will hurt MSMEs more. Bhupendra Patel, chairman of Chemexcil Gujarat region said, "China has imposed up to 82% duty on MSME companies. They will be unable to compete and their exports to China will nearly stop completely. Around 100 MSMEs located in Vapi, Ankleshwar and Vatva will be affected by the Chinese duty."
Big manufacturers have joined hands to challenge the Chinese government legally. Gokul Jaykrushna, MD of Asahi Songwon said, "China was considering this duty for more than six months and Indian manufacturers of phthalocyanine pigments came together to challenge it. The average duty is around 17.5% for large corporates while it is as high as 80% for others. We are going to challenge this duty in Chinese courts and our argument will be that this duty is unfair."
Those who are not exporting to China are also worried as the Chinese duty will intensify competition among Indian companies for other export markets.