The demand for glass had gone up by 8.8 per cent to 1,170 tonnes daily this season from the previous average daily demand of 1,075 tonnes. While the share of increase for the imported glass was only 3.3 per cent, that of the local glass was 5.5 per cent.

The dealers say that the ultimate beneficiaries of glass imports are the consumers. ``But not for this minimal imports, the sheet and float glass prices would have skyrocketed and touched even Rs 60 per sq m against the current average price of Rs 40'', they say.

Imports had been part of Indian glass trade for years. It was after 1993 that therehad been a quantum jump in indigeneous production with the entry of Gujarat Guardian and Float Glass India, and import became an issue.

The manufacturers, with limited scope for exports, had to make their fortunes in the Indian market. The new companies began with drastic cut in prices which were found unsustainable and teamed up with all the manufacturers and increased prices substantially. The prices of float and sheet glass, from Rs 28 and Rs 24.50 respectively per sq.m in July 1993 was jacked up to Rs 38.50 and Rs 31 per sq m respectively, in August 1994. By May 1996 they were Rs 49.20 and Rs 42. During the remaining period of 1996 prices had been fluctuating on a monthly basis.

Prices fell drastically in the early months of 1997 to less than Rs 30 but soared again from June to above Rs 40. During 1998 prices were in the range of Rs 42 and Rs 50 for flat glass and Rs 36 and Rs 42 for sheet glass. In 1999 prices came down to around Rs 40 and Rs 36. In July 1999 they were Rs 39 and Rs 33respectively.

Traders say the constant fluctuations and increases had compelled them to look for other sources outside the country.

The issue of `low-priced exports' by Indonesian companies and `cartelisation' by the manufacturers were brought before the Monopolies and Restrictive Trade Practices Commission. The Commission was apprised of what the All India Glass Manufacturers Association has termed as dumping by Indonesian companies. They wanted the commission to impose anti-dumping duties on such imports and spare the Indian industry.

Traders had accused the manufacturers of unfair practices in pricing and elimination of competition from the market. A final verdict from the commission is expected any time now.

The traders also say that most of the imports are of items not readily available in the country. However according to an Indian company representative, all items, clear and tinted, are imported and they are priced below that of the indigenous products at around Rs 34-36 per sq m.

There islittle likelihood of any notable increase in glass prices mainly owing to imports and the current excess capacity of 1,850 tonnes per day against a demand of 1,170 tonnes daily. The daily capacity is slated to increase by another 550 tonnes with the commissioning of the Sriperumbudur plant of Saint Gobain Float Glass India Ltd in early 2000.