Boric acid classification hits ceramic inds

Boric acid, a multi-application product is classified as insecticide by the Central Insecticide Board, if imported and sold in India. The restriction imposed by the board has hit hard the ceramic industry in the country. With hardly 0.12 per cent boric acid consumed as insecticide as against its wider application in Ceramics tiles Industry per annum.

This is likely to affect the price of the ceramic products in near future especially when the quality ceramics tiles manufactured in India are strongly contending on global fronts with China and are subjected to tight margins to survive global price-war. The recent price hike in fuel observed in last few months in India has already added fuel to the fire for the industry.

Boric acid is used primly to give lustre to the tiles and fritz which are used as a raw material in ceramic products. The importers of boric acid are facing hard time ahead and are likely to undertake legal course of action in near future against this sudden decision of government.

"If this product is imported its being treated as an insecticide and being treated as an insecticide, we have to undergo tedious procedures to get in our nation as a trader," claims Kiran Ajmera, Managing Director, Chemie Alliance India.

Gujarat alone consumes 30 per cent of Boric Acid, and when there is such a huge potential, its very much a product in demand from the ceramic tiles manufacturers across the region of Morbi in Saurashtra and Kadi-Kalol, Mehsana in North Gujarat.

Due to this sudden regulatory measure being imposed on trade, its hard to import boric acid and sell it to the end-users for their required area of applications, he added.

Presently there are two major companies producing boric acid in domestic circuit, Indo Borax and Borax Morarji who enjoy 80 per cent-90 per cent market share.

"Being a trader and importer of Boric Acid, the administration asks us to produce end-user certificate if its not being used as insecticide, which is hard for us to avail from our customers because we ourselves are not aware as to where its going to be used as the product has multi-applications like being used as preservative, softening agent and other applications apart from being used in ceramics trade," argues Kiran.

The estimated market size of the product ranges somewhere between 15,000 MT to 17,000 MT per annum, of which 9,000 MT per annum is produced domestically and rest 6,000 MT to 8,000 MT is to be imported, now if a vaccum is created blocking import of 6,000 MT to 8,000 MT by classifying it as an insecticide, imagine the monopoly domestic manufacturers are going to enjoy, said Kiran.

Boric acid is an annual market of Rs 60 crore to Rs 70 crore in terms of money value, adds Kiran.

Speaking on the applications of Boric Acid mainly as an insecticide and in Ceramics Trade, Kiran says, "In Ceramics tiles industry consumption of Boric Acid is approximately 4,000 MT per annum against which in fertilisers its consumption is hardly 500 kilograms per annum as its used as an ingredient"" 0.5 MT, which is just 0.12 per cent against the application of product in Ceramic Tile Industry trade, so why than such a special favour for classifying Boric Acid as Insecticide, when its application ratio in other products is comparatively higher than its consumption as an insecticide," questions Kiran.

After Boric Acid has been classified as insecticide, prices of fritz used in ceramic tiles have shot-up marginally and this is just an add-on pricing in the ceramic tiles which are already tight budgeted product due to 60 per cent price hike experienced in fuel used to make it in last few months.