DEBATE: SMALL & MEDIUM ENTERPRISES

On supplier cartels and input import


Posted: Friday, Aug 19, 2005 at 0125 hrs IST
Updated: Friday, Aug 19, 2005 at 0125 hrs IST


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: long-term contracts by steel producers. The issue in question could be addressed as

listed below:

One, by having a strong and functional Competition Commission of India. A competition policy is in place, but the commission is yet to be made functional. Small industry associations will have to pool resources to file cases and be ready to fight long battles there.

Two, by making special efforts to help create large trading houses (through fiscal incentives), which could import into India and sell inputs such as steel, copper, aluminium and raw materials such as plastic to small user-industries.

Three, having realised the importance of curbing the anti-competitive activities of cartels, India has already opted for a competition policy. The activities of these cartels at a global level are much more damaging. These cartels cannot be controlled by one nation and need to be restrained and penalised through a multilateral agreement. The benefits of such an agreement would not only result in improved market access for Indian products, but also help reduce the prices of raw materials where cartels operate. India should have a relook at its stand on having a competition policy in the WTO.

Four, the process of anti-dumping needs to be made more transparent and participatory. The interests of consuming industries have so far been neglected in India. This bias needs to be corrected.

For the past two years, we have been facing shortages of electrode wire rods, used for manufacturing of welding electrodes. Prices of the input have also shot up. We want to import these to cope with our problem. Could you advise us where we could source the material from?

— Naveen Jain, UP Welding Electrode Manufacturing Association, Modinagar

You could source this material from China. The best way would be to send one of your representatives to the Canton Fair (http://www.cantonfair. org.cn), which is organised twice every year. The dates are April 15-20 and October 15-20.

Alternatively, you could also try to post your query at http://www.alibaba.com. Try to source the material directly from the manufacturer. It is advisable to get pre-shipment inspection done by international agencies such as SGS, Bureau Veritas, etc to ensure quality and quantity.

Anil Bhardwaj is former secretary-general, Fisme. Readers may send queries to fesmes@gmail.com...

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