INDIA: Dumping a threat to local glass industry

Chinese and Indonesian producers have captured a 5% share of the Indian glass market. As per estimates of All India Flat Glass Manufacturers“ Association (AIFGMA), on an average around 500 tons of gl…

Chinese and Indonesian producers have captured a 5% share of the Indian glass market. As per estimates of All India Flat Glass Manufacturers“ Association (AIFGMA), on an average around 500 tons of glass is dumped in the Indian market every month. Though the quantity of imports is still very small, the threat to the domestic industry is increasing at an extremely fast pace, Alok Kumar Modi, chairman of AIFGMA, said. In fact, during the last six months, China has emerged as a bigger threat to the local industry, which until recently faced competition only from Indonesia. Though imports are confined to a few select markets at present, the threat is spreading fast to other markets as well. This is because glasses from China and Indonesia are at least 50% cheaper. The case is pending with Monopolies and Restrictive Trade Practices (MRTP) body for the last five years, yet no concrete move has been taken in this direction. Though glasses from China and Indonesia were inferior in quality, Indian producers were finding it difficult to compete with the imports, because of the low prices, he said. Modi said the government had to take anti-dumping measures to protect the domestic industry, which is by and large dominated by small producers.