Tile firms up in arms against dumping

Alleging that China was dumping low-quality tiles in the Indian market despite the anti dumping duty on Chinese made tiles, the Gujarat Ceramic Floor Tiles Manufacturers' Association has warned that this will result in the closure of many tile units in Gujarat and huge job losses.

Tiles manufacturers said that Chinese made tiles were being routed into the country through Indonesia, Thailand, Malaysia and Saarc countries and were selling at a cheaper rates than Indian tiles.

More than 70 per cent of the semi organised sector in the Indian ceramic tile industry is based in Gujarat. Companies in Gujarat mainly manufacture ceramic floor and wall tiles although some of them have diversified into manufacturing of vitrified products.

"The Chinese goods are of sub-standard quality. However, what is worse is that these products are being passed on to the consumers as vitrified tiles, while they actually are just ceramic tiles," said Girishbhai Pethapera, chairman of Gujarat Ceramic Floor Tiles Manufacturers' Association (GCFTMA).

While the cost production of vitrified tiles in India is around Rs 45- 50 per square metre, China produces tiles at Rs 22 per square feet.

"Faced with such a situation, several small ceramic tile unit owners are even contemplating shutting down their business. Over 1 lakh people are directly or indirectly employed by this industry in Gujarat and all will be rendered jobless if this continued unchecked," said Hamukh Patel, president, Sabarkantha District Ceramic Association.

Tile manufacturers here say that they have made several demands to the state and central governments, asking for more stringent checking of tiles which are brought into the country.

"The authorities need to check the 'country of origin' certificate as anti dumping duty is being levied just for China and the UAE," said Pethapara.

Becharbhai Patel, president of the Morbi Chamber of Commerce and Industry, said that small scale tile units cannot import raw materials such as clay, machinery, grinding media, soluble salts and the like at such a high import duty and despite being assured that the SSI limit will be increases, the government has not done so.

"The worst hit are the SSI units, which have not been extended any support by the government," he said.