Anti-dumping duty on float glass to hit MSMEs and consumers;

Anti-dumping duty on float glass to hit MSMEs and consumers; will benefit only a few MNCs

image
Anti-dumping duty on float glass to hit MSMEs and consumers; will benefit only a few MNCs

New Delhi, May 17 (KNN) In a move which is seen as a huge setback by MSME glass manufacturers in India, an anti-dumping duty has been imposed on float glass used as raw material by processors.

Though the Directorate General of Anti-dumping and Allied Duties (DGAD) says that duty was imposed to ‘protect’ the domestic industry from cheap imports, the Micro, Small and Medium Enterprises (MSMEs) allege that it is for the benefit of only a few big players while hundreds of downstream MSME players will be burdened with additional raw material costs.

Just a handful of companies like Saint Gobain and Guardian Glass control 70-80 % of float glass market share in India.

Anti-dumping duty of up to USD 55.59 per tonne is levied on clear float glass from 4 mm to 12  thickness which is used mainly by processing industry for making safety glass, heat and sound insulated glass and laminated glass and most of the processing units are MSMEs.

MSMEs feel that it will increase their input costs and at the same time it will give room for float line owners minimum bench mark price to earn undue profit for five years.

After the big companies filed the application for dumping probe of these product, Commerce Ministry’s investigation arm —DGAD— in the separate probe had concluded that these products were dumped into India and it has caused material injury to the domestic industry.

Meanwhile, talking to KNN, glassware manufacturers from MSME sector were sceptical of the probe and said that “what is ironical is that these ‘injured’ MNCs are in fact adding huge capacities every few years and term such probes hogwash”.

Dinesh Tripathi, who is Honorary Secretary of the Federation of Safety Glass (FOSG) and President of industry body FISME, said, “Float glass is a raw material for hundreds of processing units which are mostly MSMEs and the anti-dumping duty will make their raw material costly and adversely impact their competitiveness.”

Tripathi said the small glass manufacturers will make representation to the government on this issue.

Another MSME glass manufacturer, who didn’t wish to be identified said, “the big players have put captive large processing units and use these cheaper raw materials for their own projects and therefore MSME processors cannot compete for project orders in domestic or overseas markets”.

The entrepreneur lamented that MSMEs are being crowded out and un-fortunately anti-dumping has become a handy tool which many large companies use for profiteering at the expense of downstream-users and consumers. (KNN Bureau)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s