Morbi de Gujarat faces heat while Gulf states impose taxes on ceramic products
RAJKOT: A spectrum of production cuts and massive job losses hangs over the famous Morbi ceramic industry with the Cooperation Council (GCC) that approved a provisional order to impose anti-dumping duties ranging from 40% to 106% on products Ceramics imported from India.
The GCC is a political and economic union of all Arab countries, except Iraq, and represents countries such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Morbi, the largest ceramic group in India, exports 35% to 40% of its products to the Gulf countries. Industry owners fear that such a massive anti-dumping tax forces at least 400 units to drastically reduce production, which would ultimately result in pink slips for almost 75,000 people.
The CCG had initiated an investigation against Indian, Chinese and Spanish ceramic products a year ago after a complaint filed by Saudi Ceramics and the Alfanar Ceramic and Porcelain factory in Saudi Arabia, which accounts for more than 32% of GCC's production.
The Ceramic Association reviewed the provisional order and, according to it, the majority of exporters fall under the criteria of the anti-dumping duty of 42.9% and their Chinese counterparts face the right of 24%. Therefore, Morbi will surely lose competition with China in the Gulf.
Of the 850 manufacturing units in Morbi, about 200 had sent samples of their products to GCC during the research process a year ago. These companies face an anti-dumping duty of 42.9%, while the rest of the units that did not send the samples will have to pay the 80-100% duty.
Almost 75,000 people can lose their jobs
Ceramic units have the opportunity to present their objection until November 11.
Nilesh Jetparia, president of the wall tile association division, said: “We export 4,000 crore tiles to the GCC member countries. The anti-dumping duty has killed 400 units and almost 75,000 people will lose their jobs. ”
“The ceramics industry also generates direct and indirect businesses for suppliers of raw materials, suppliers of machinery equipment, transport companies, electrical sector, gas industry and others. All of these stakeholders will suffer large losses due to the order of the CCG. We ask the government of India for immediate diplomatic intervention, ”said Jetparia.
The decision of the CCG is the latest in the shaking of the ceramic industry. In March, the National Green Court (NGT) had ordered the closure of the units with coal gasifiers. In addition, due to the slow real estate market and low retail sales, the units had reduced production by 30%.
Morbi has been exporting to 150 countries, including Italy, Mexico, Brazil and Turkey. The group produces tiles, tiles, vitrified tiles, polished tiles, double load tiles, sanitary products, industrial ceramics and technical ceramic products.
K G Kundaria, one of the largest exporters of vitrified tiles to the Gulf countries, said: Less anti-dumping duties on China will ultimately result in the elimination of Indian products from the Gulf. We will be forced to reduce production and the workforce. ”