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Wednesday, Apr 20, 2005

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Industry & Economy - Anti-dumping

Paper makers want dumping duty on caustic soda to go

Our Bureau

New Delhi , April 19

THE Indian Agro & Recycled Paper Mills Association (IAPMA) has sought the removal of anti-dumping duty on caustic flakes and caustic lime, alleging that prices of caustic soda and liquid chlorine have been increased "exorbitantly".

It also alleged that the manufacturers of these two products have formed a cartel under the aegis of the Alkali Manufacturers Association and are "jacking up prices of caustic lime and chlorine at every available opportunity".

Caustic soda accounts for 20-25 per cent of the cost of production of paper.

IAPMA now plans to approach the Finance Ministry for removal of the anti-dumping duty and for restraining the "cartelisation activities" of the alkali manufacturers.

IAPMA said that prices of caustic soda have almost doubled within one year; from Rs 13,000-14,000 per tonne in April 2004 to Rs 25,000-27,000 this April.

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