This forced the domestic industry to keep down its production and underutilise its capacity. The overseas suppliers at one stage had brought down their prices as low as $90 per tonne cif. Consequently, the domestic industry had to struggle for its very survival. The overseas prices have now gone up to about $175-180 per tonne in the wake of the rise in prices for oil which have pushed up fuel costs. Imports have thus almost stopped for the past four months or so and are unlikely to be resumed, given the present situation.

Another factor which has provided some relief to the domestic industry is the imposition of anti-dumping duty on imports of soda ash at the rate of Rs 1.50 per kg.

Industry sources explain that while soda ash and caustic soda have certain distinct applications, there are certain areas where either of them can be used.

Dumping of soda ash was thus causing harm to the caustic soda industry as well, particularly in areas which were common to both these alkalies. Pressure on caustic soda from imports of soda ash has greatly diminished.One more factor that has provided some relief to the domestic caustic soda industry is that exports have been resumed. Currently shipments of caustic soda are around 1.5 lakh tonnes a year.

Furthermore, there is improvement in industrial activity in certain areas where caustic soda finds applications. The industries which consume caustic soda and whose production is going up include textiles, paper and pulp, aluminium, viscose staple fibre etc.

Though the textile industry is facing several other problems, its production is going up, though the sales of textiles might be difficult. The paper industry which had been for long faring badly is now doing much better. Aluminium production is also rising and that industry expects about six to eight per cent annual growth at present. Production of viscose staple fibre is fast picking up.

In the first quarter of 2000-01 it has grown nearly 19 per cent over the same period of the earlier year. Last year it was working around 70 per cent of capacity.

It is now operating at nearly full capacity. All these developments should help the caustic soda industry in raising its production and capacity utilisation.

Caustic soda is an important industrial intermediate and several industries are dependent on it. Keeping this factor in view the industry has built up substantial capacity.

As can be seen from the accompanying table the industry's capacity (in operation) has increased from 15.19 lakh tonnes in 1994-95, about 22.61 lakh tonnes by 1999-2000 indicating a rise of 48.85 per cent over the period. On the other hand actual production could move up during the period from 12.07 lakh tonnes to 15.14 lakh tonnes, indicating a growth of 25.43 per cent over the period.

Capacity utilisation which was of the order of 79 per cent in 1994-95 gradually came down to 66 per cent in 1998-99 as increased in production could not keep pace with that in capacity build up.It has increased to nearly 66.96 per cent in 1999-2000.