Glass units for duty-free soda ash

Written by fe Bureau | Chennai | Updated: Jul 1 2009, 04:29am hrs
Raising hopes on the much-awaited Budget by the UPA government at the Centre, the All India Glass Manufacturer's Federation (AIGMF) is seeking a total go on the custom duty on import of soda ash. As per AIGMF memorandum, soda ash comprising 30% of production cost is the major price escalating factor in the Rs 4,500 crore glass manufacturing industry.

Citing the unchecked reigning of few major manufacturers fixing the price of soda ash in tune with landed cost of imported of soda ash, AIGMF urges the government to reduce the customs duty on imports, which will reduce the landed cost resutling in reduction in prices by indigenous manufacturers. Reiterating the need to fix the price of soda ash at international rates, the memorandum of demand further points out that imposing of safeguard duty on imports of soda ash from China will also result in increase in price of imported soda ash.

AIGMF also urges the government to ensure the uninterrupted supply of both the inputs as glass being a continuous process industry and any interruption in supplies would result in damage of furnace ending up in heavy losses.

The slashing of excise duties as a measure to tackle slowdown should continue as it help the industry in competition with foreign companies in the domestic and international market as well, says memorandum on list of demands by AIGMF.