12 March 1998: The Monopolies and Restrictive Trade Practices Commission (MRTPC) has begun a formal investigation into charges of cartelisation and restrictive trade practices in the pricing of soda a…
12 March 1998: The Monopolies and Restrictive Trade Practices Commission (MRTPC) has begun a formal investigation into charges of cartelisation and restrictive trade practices in the pricing of soda ash, allegedly indulged in by three major domestic manufacturers, a press release said recently. According to the release, the MRTPC“s action follows a recent complaint by the AIGMF on behalf of soda ash consuming units, accusing Tata Chemicals, Gujarat Heavy Chemicals and Birla VXL India of teaming up to raise soda ash prices. The three companies together have a 87% share of the Indian market for soda ash. “For years, we have been complaining about the tactics of Indian soda ash manufacturers, who have been working as a cartel and have raised prices in tandem, more than doubling them over the past four years,” the AIGMF president, Mr. R.K. Paliwal, said. The federation has also expressed hope that the investigation would lead to a removal of the ban on soda ash import. The AIGMF is said to have had pleaded with the MRTPC to reject the prevailing ban on import of soda ash from ANSAC, an overseas company which markets US soda ash in about 50 countries. After the Government lowered tariffs a year ago, some Indian glass manufacturers imported one cargo of soda ash from ANSAC. Local soda ash producers then immediately approached the MRTPC and obtained a ban order against goods from ANSAC, the release said. The soda ash makers pleaded that ANSAC had long-term designs for monopolising the Indian market and that it was selling soda ash at prices far below the cost of local manufacturers. “Exaggerating the magnitude of international competition, they also falsely claimed that competition from ANSAC would threaten the very existence of the Indian soda ash industry,” the release said. “Now that MRTPC has formally opened an investigation of soda ash pricing norms of Indian manufacturers, substantial evidence of their abnormal profits are sure to come to light. In view of this we hope that the Commission will remove its ban on imports of soda ash from ANSAC,” Mr. Paliwal said.