GHCL Ltd Rallies Against Rising Soda Ash Imports Amid Global Surplus

GHCL Ltd, India's second-largest soda ash producer, seeks government-imposed anti-dumping duties on soda ash imports from China and other countries. The move aims to protect local producers from eroding margins due to cheaper global shipments, as import shares surge and demand continues to grow, particularly in the solar energy sector.

GHCL Ltd, India's prominent soda ash manufacturer, has urged the government to impose anti-dumping duties on imports of soda ash from China and other exporters. This request comes as cheap foreign shipments increasingly dominate the domestic market, eroding the profitability of local producers, revealed the company's Managing Director.

The import share of soda ash in India has escalated to 25-26%, up from a historical 15%. With India being a minor player in global demand yet growing rapidly at 6% annually, it faces pressure from countries that hold natural reserves, unlike India. This situation is exacerbated by China's significant capacity expansions, fueling a global surplus.

Efforts to counter this include India's extension of the minimum import price on soda ash, but GHCL indicates this measure is insufficient. The Directorate General of Trade Remedies is investigating the situation, while GHCL emphasizes the need for strengthening cost competitiveness to remain sustainable in the global market. The company's plans include increasing production and capitalizing on growing solar energy demands.

(With inputs from agencies.)