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[July 2008]
Major Indian Association Seeks Anti-Dumping Duty on Ceramic Tile
Indian business media report that having got a reprieve in the form of an extension of anti-dumping duty on vitrified tiles from China for another five years, the industry there is now seeking an anti-dumping duty levy on ceramic tiles as well.
The industry has been enjoying the benefit of an anti-dumping duty on the vitrified product from China and United Arab Emirates (UAE) since 2002.
"There is a difference of at least 70 per cent in prices offered by Chinese ceramic tiles manufacturers and the domestic players. We have written to the government to impose an anti dumping duty on ceramic tiles, as has been the case in vitrified tiles," said Nenshi Shah, Chairman and Managing Director of Euro Ceramics and Chairman of The Indian Council of Ceramic Tiles and Sanitaryware (ICCTAS).
As for the extension in anti-dumping duty on vitrified tiles from China by the government, industry players believe the move will result in a rise in prices of vitrified tiles. "Domestic vitrified tiles manufacturers will now raise the prices by at least 10 per cent to make the most of the duty extension. Unlike six to seven years ago, the competition from Chinese products has eased over a period of time for these players," said Rishi Kajaria, director of Kajaria Ceramics Ltd.
The total Indian ceramic industry boasts of a production base of 400 million square metres per annum, of which the vitrified tile market constitutes 100 million square metres. Overall, the industry generates a revenue of Rs 8,000 crore in ceramic tiles with vitrified tiles forming 20 per cent of it.ENDS