Even when Kandla Port authorities are confident of resuming operations within a week's time, local chemical traders and manufacturers are not so hopeful. Accordingly, they say, that there is likely of some shortage of various chemicals and intermediates in the local market, that may lead to their prices rising by around 10 per cent to 15 per cent. However, given the overall sufficient supplies of the cross section of chemicals in the market, the price rise may not last long, if implemented.

Says the Chemical and Alkali Merchant's Association (Cama), president, Dhimanat Shah: "Currently, the prices are stable and are not seen to rise immediately following the earthquake and the disruption of activities at Kandla Port. There is excess stock of chemicals in the market which coupled with low demand there are little chances of major price jump."

Indian Chemical Manufacturers Association (ICMA), president, Rajive Pandia, says: "It is too early to gauge the quantum of damage in Gujarat. However, we are of the opinion that there is no serious damage of any chemical plants in the state." On the other hand, the Basic Chemicals, Pharmaceutical and Cosmetics Export Promotion Council (Chemexcil)'s, chairman, Kishore R Chokhani feels: "If the Kandla and other ports are not fully operational by next two months, there are chances of decline in chemical exports by around 10 per cent or Rs 1,200 crore." Chemicals export during the current year was expected to touch Rs 17,000 crore, up by around 23 per cent, up from last year Rs 13,826 crores recorded in 1999-2000 Polymer industry in Gujarat, according to Organisation of Plastic Processors of India (OPPI), president, VK Taparia, is relatively safe after the quake. "Following my recent visit to Gujarat I feel prices of commodity plastics will not rise in the domestic market as they are dependent on internationalprices." Meanwhile, domestic exporters fear about the increasing export procedural difficulties from the customs officials. Chemexil has, therefore, indicated that the government should urgently issue notification covering these and other related fears.

Among others, the export duty entitlement benefits (under DEPB, ECGS, advance licence and others) which are said to be port specific, will have to be clarified by the government. In absence of such clarification, there is likelihood of misunderstanding among the customs officials and the traders involved.

Port to begin trial operations today
Kandla : Untry's busiest Port at Kandla is likely to begin trial operations on Saturday, beginning with unloading of general cargo at six berths.The Port, completely shut down after the devastating earthquake of January 26, which had played havoc with berthing, warehousing and navigational facilities, would resume partial operations on trial basis tomorrow, KD Raju, traffic manager, Kandla Port trust said.

Six vessels carrying general cargo are anchoring in the gulf of Kutch and would start unloading at berths number one, five, 5a, 6a, seven and eight, he said. Port officials, however, refuted reports of oil and chemical leakage from crude oil pipelines and chemical storage facilities. "While there has been no leakage from oil pipelines, a minor leakage from the ACN (acrylonitrile) storage plant was immediately plugged" they said.

While experts from Mumbai and Chennai ports are working out the extent of damage caused by the earthquake and the rehabilitation programme, S Gopalan, development advisor (Ports) with the Union ministry of shipping, is giving final touches to his report on the impact of the earthquake on Portfacilities.

The earthquake severely disrupted jetty and warehousing operations at Kandla Port which handles 17 per cent of total cargo handled by major ports in the country, Mr Raju said adding three of the eight container berths and two of the five liquid cargo jetties have been heavily damaged.