Domestic guar gum manufacturers are resenting China's 'tactics' of imposing high customs duty on export of the value added product from India and encouraging shipment of raw materials (guar gum splits) by keeping the duty at half.
Besides, while on the one side China is imposing differential duties on Indian guar gum split and power, the import of the same from Pakistan is duty-free.
However, export of the item from Pakistan is much lower than from India and there is not much competition, traders said.
For the past 3-4 years, China has been charging 7% duty on the raw material coming from India while the same on the finished product is double (15%), traders said.
In addition to China, India exports the item to US and Europe where no no duty is charged on the items, PK Hassaria, President of Indian Guar Gum Manufactures Association (IGGMA) told PTI.
China accounts for 25% to 30% of the total exports of guar gum splits (raw material) from India and Pakistan.
"We have approached the Indian government to take up the issue with the Chinese authorities," Hassaria added.
India and Pakistan are the major producer of guar gum.
India, which produces almost 80% of the guar gum, is the world's largest exporter of the item.
Within the country the guar gum seeds are grown in Rajasthan particularly in Jodhpur region, Haryana and Gujarat.
IGGMA Secretary Sohan Jain said the trend is putting Indian manufacturers to disadvantage.
"Indian manufacturers are competing with the Chinese (who are manufacturing finished products of guar gum out of cheap raw material shipped from India) in the international markets," Jain said while resenting China's 'tactics'.
He urged the Indian government to impose a cess of 15% on export of the raw material to make it a deterrent.
Hissaria said after addition of duties a kg of guar gum split is presently costing $2400-2500 in China, while guar gum powder is costing $3300-3500.
He said India exports about 15,000-20,000 kg of guar gum split to China and 10,000 kg of guar gum powder.
Guar gum is extracted from the seed of Cyamopsis tetragonoloba, an annual leguminous plant originating from India and Pakistan. Guar gum is extracted from guar bean.
It has wider use in textile, paper, explosive, pharmaceutical, cosmetics and toiletries industries. It is also used as thickener in toothpastes, conditioner in shampoos (usually in a chemically modified version), Oil and gas drilling and hydraulic fracturing Mining.
