Phthalocyanine pigment exporters in Gujarat are staring at a tough scenario as China has imposed heavy anti-dumping duty, ranging from 15% to 82%. The decision of the Chinese authorities will bring the present volume of exports to almost 50%. Most of the firms engaged in the business are based in Gujarat.
Insiders say that the Chinese move is likely to hit the small firms harder. The bigger companies with proven quality records will continue to be preferred by the importers. However, the new players and those trying to get a foothold will be deterred by the anti-dumping duty.
On products from MSME companies, the duty imposed is about 82%. It will hurt them the most, making it almost impossible to compete. More than 95 MSME units dealing in phthalocyanine pigment are located in Vapi, Ankleshwar and Vatva. At present, the revenues generated from China in this sector are to the tune of Rs 3200 crore. The new tariff policy of China will impact this revenue.
Bigger firms also think that the duty is unfair. It will also have the undesired side-effect of increasing competition in the domestic market. Gujarat-based industry associations have raised the issue with the government and are also taking the matter to the commerce ministry.
India has an advantage over China in reactive dyes and pigments thanks to the availability of resources, research and development, and expertise. The hope is tied to the assumption that quality-conscious buyers in China will continue to use Indian pigments.