Bangalore, Karnataka, India: The Indian Council of Ceramic Tiles and Sanitaryware (ICCTS) has sought antidumping duty on import of glazed wall and floor tiles to protect domestic manufacturers from losing market share and incurring heavy losses.
ICCTS chairman Nancy Shah told IANS from New Delhi late Saturday that the government should levy anti-dumping duty on glazed wall and floor tiles, imported largely from China and the United Arab Emirates, as it did in the case of imported vitrified tiles in 2003.
'Though antidumping duty on imported vitrified tiles brought relief to local manufacturers, import of ceramic wall and floor tiles in large quantities has led to prices crashing and profit margins of domestic manufacturers eroding,' Shah said.
'The dumping is affecting local players who have invested heavily in setting up production plants with huge capacities,' she pointed out.
The domestic market of glazed wall and floor tiles is estimated to be about Rs.50 billion annually.
With large quantities of these tiles, valued at Rs.5 billion, being imported into India from China and the Gulf countries during the last 2-3 years, local manufacturers and dealers have been forced to lower prices by 15-20 percent to survive.
'We have presented our case to the union commerce and finance ministries and sought immediate relief, as further delay in imposing antidumping levy will drive many domestic manufacturers out of business in the face of surging imports,' Shah said.
The demand for glazed wall and floor tiles has shot up by about 30-40 percent during the last three-four years due to all-round construction boom in a burgeoning economy.
'Even the middle-classes have started investing in exotic tiles in new houses or renovating existing ones, especially in kitchens, restrooms, prayer rooms, etc. Using imported tiles has become a fashion though Indian-made tiles are no less in quality and variety,' Shah pointed out.
The ministries have asked the council to supplement its case with additional data on the impact of dumping across the supply chain and the quantum of antidumping duty to be levied to protect local manufacturers in the organised and unorganised sectors.
'We have already briefed government officials on how in the past about 30 percent antidumping duty on vitrified tiles had bailed us out. It also enabled the organised sector to expand capacity with more players entering the industry. It is for the government to decide on the quantum of levy in conformity with the WTO (World Trade Organisation) regulations,' Shah noted.
There are 40-50 well-known manufacturers in the organised sector, while 200-250 units are scattered across the country in the unorganised sector, meeting the growing commercial and housing construction industry.
With the lifting of quantitative restrictions (QRs) under the WTO regime and lowering of duties, import of cheaper tiles from China, the Gulf region and some European countries has been increasing by five-ten percent annually.
As a result, the use of imported tiles in the commercial and housing sectors has been going up by 10-15 percent annually.
'If the government does not check the dumping trend, the local ceramic tiles industry will be severely hit in the coming years, forcing many to shutdown their manufacturing units,' Shah affirmed.
The council, a 17-year-old apex body of the ceramic tile industry, promotes the growth of Indian tiles and sanitary ware in the domestic as well as overseas markets.
As a platform to voice the concerns of the industry, the council has been representing to the government for level-playing field vis-a-vis importers to meet the increasing demand for a variety of tiles in the domestic market.
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