While the figures for imports of various chemicals is not available even with the respective industry associations, industry sources say, continued imports of cheaper products from South Korea, Taiwan and China among others will keep the prices depressed in the local markets during the year ahead.

Coupled with low off-take, the domestic chemical industry's growth, according to managing director of a leading chemicals company ``is feared to go down to around 5-7 per cent during 2000-2001 from 12 per cent during 1999-2000''. Justifying the lower growth this year, the executive said ``because of the overall sluggishness, since the past few years, there have been no new technological development or introduction of new products in the industry. This inevitably contributes and leads to the declining growth in the industry".

Dyestuff sector: Faced with excess capacities and falling prices of dyestuff, the makers (mostly in the SSI sector) found themselves in a grim situation during 2000. During the year, prices of various dyestuff chemicals declined by around 30-55 per cent. With cheaper imports flooding the domestic markets, industry sources fear there may be a further price fall of 20-25 per cent during the first six months of 2001.

Of these, the fall in prices for H-acid was the steepest at 46 per cent. From the year's high of Rs 260 per kg early January last, these are currently ruling at around Rs 130 per kg. Dasa (42 per cent) from Rs 170 per kg to Rs 95 per kg; reactive-black (33 per cent) from Rs 120 per kg to Rs 80 per kg; acid-black (33 per cent) from Rs 150 per kg to Rs 100 per kg. Alongwith these the prices of other dyestuff chemicals are said to the lowest in last 10 months.

Industrial solvent: Last year solvent traders in the domestic chemicals market were in a piquant situation, due to a notification issued by the ministry of petroleum and natural gas treating solvents as an essential commodity. Due to this, most of the solvents prices went up by 60 per cent and said order is likely to be effective from March 2001. The order styled as `Solvent, Raffinate and Slop (Acquisition, Sale, Storage and Prevention of Use in Automobiles) Order 2000 was issued on June 5, 2000. However, recently the ministry has clarified that, a new solvent order is not yet effective due to some technical reasons.

Following the issue of this notification, solvent prices in Mumbai had jumped by around 60 per cent. For example, others solvent Toluene was quoted at Rs 26 per kg (plus duty and taxes) from Rs 18 per kg (plus tax and duty) in June, indicating price jump of around 44 per cent, Benzene was quoted at Rs 25 per kg (plus duty and taxes) up from Rs 15 per kg (plus taxes and duty), up by around 65 per cent and Xylene was quoted at Rs 27 per kg (plus duty and taxes) from Rs 22 per kg up by around 23 per cent. Other slovent prices too have jumped by around 25 per cent.

The Chemical and Alkali Merchants Association, President, Dhimant Shah said that " Now at present most of the solvent price has stablised in the market, but it is likely that, solvent price will be up around by 10-15 per cent on implementation of solvent order" Pesticides: Pesticides industry bore the brunt of poor rainfalls last season that finally led to around 40 per cent decline in the total off-take of the pesticides during the year. In turn, this resulted in pesticides prices slide by around 15-20 per cent. Currently, prices is stagnant.

According to The Pesticides Manufacturers and Formulators Association of India (PMFAI), president, Pradeep Dave ``While the domestic demand was depressed, we hope for brighter days ahead in exports. The global market is roughly US $17.5 billion, which is likely to increase to US $27 billion by the year 2005. And hope that there will be impressive growth in export."Benzene: During the last year benzene prices had risen by around 30 per cent since last April in the local market, primarily following the continuous rise in crude oil prices. During the year, benzene was quoted around at Rs 27 per litre, up from Rs 19 per litre quoted in April 2000.

Menthol: Menthol prices during the last year jumped by 70-150 per cent, due to unlawful speculation at the Delhi market. But now due to over-supply and poor demand, domestic traders fears that menthol prices will go down sharply due to stock shortages in the godown. Menthol prices had been traded at high prices in past for nine months, between the rang of Rs 1,600-800 per tonne, but currently it is around Rs 450-550 per tonne.

Alcohol: Industrial alcohol prices constantly increased during last year and it has shot up by around 65 per cent in the last year. Currently ethyle alcohol prices has jumped to Rs 13-16 per litre from Rs 5-9 per litre which was in the beginning of the year. In the new year, following the problem of water shortage faced by the alcohol making industry in Maharashtra, the price will be up by 10-17 per cent in the first half of new year.