The ceramic industry is staring at a dire situation with the news of US decision of Anti-dumping duty on Indian tiles. Already struggling with the consequences of falling demands in domestic market, Morbi has reasons to worry.
Morbi is a huge certre for cermaic industry, contributing heavily towards Gujarat’s and by that extension, India’s economy. Morbit houses more than 900 ceramic manufacturing units and accounts for more than 80% manufacturing of ceramic tiles in India and supplies 18% of the global demand.
USA is one of the main markets of ceramic tiles exports. American ceramic tile manufacturers have submitted a memorandum for imposing an anti-dumping duty of up to 800% on Indian ceramic tiles. The US manufacturers complain about the lower prices of imported tiles. The US International Trade Commission and the US Department of Commerce are looking into the issue. If the US government imposes decides to impose higher duty on tiles imported from India, it will affect Gujarat’s Morbi the most.
The Morbi manufacturers argue that is would be understandable if the anti-dumping duty is imposed reasonably. They say that the demand of US manufacturers is very high. The decision on duty to be charged will come in the next 2 months. There is already a slowdown noticed in Inquiries for new orders since this presentation. Old orders are currently being exported. Importers and exporters of both countries are waiting for the decision. During the financial year 2023-24 approximately Rs. 1,600 crore worth of tiles were exported to America.
The President of Vitrified Tiles at Morbi Ceramic Manufacturers Association, said that exports have increased this year due to good global demand for Indian tiles. The association plans to make a presentation to the Ministry of Commerce, once the ongoing elections are over.
The President of Wall Tiles Division of Morbi Ceramic Association, said that the export of ceramic tiles from India this year was Rs. 15,000 crore against Rs. 18,000 crores. The association said they would like the Ministry of Commerce to intervene in this matter after the election. They understand that in all likelihood, the anti-dumping duty will certainly be imposed, but they would put in all efforts to retain the same at a lower rate.
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