Government should remove anti-dumping duty on flexible slabstock polyol, a substance used for manufacturing pillows and mattresses, as the domestic production is not enough to cater to the local demand, industry body Assocham said today.
"In India there is no dumping of flexible slabstock polyol, besides domestic production is not enough to cater to local demand as such there should be no safeguard duty imposed on import of flexible slabstock polyol from Thailand," the industry body said in a letter to Commerce Secretary Rita Teaotia.
It said the government should provide level-playing field to both domestic polyol manufacturers and importers/downstream industry players by eliminating existing trade barriers being imposed after "misrepresentation of facts" by certain domestic flexible slabstock polyol (FSP) manufacturing companies.
FSP is imported from several countries, and mainly from Singapore, Netherlands, the US, Korea RP, Thailand and Taiwan.
It is a polyether and on reaction with catalysts and additives yields polyurethane foams used in pillows, bolsters, upholstery, mattresses, transport seating and packaging.
"Large parts of the demand of flexible slabstock polyol in India is being catered by imports of raw material due to non-availability of domestically manufactured polyol in sufficient quantity," Assocham Secretary General D S Rawat said.
"Import of raw material is extremely critical for flexible polyurethane industry in India which otherwise would impact existence and growth of domestic industry and labour engaged in polyurethane foam manufacturing," he added.
The chamber alleged that companies in India have been thrusting their inefficiency on downstream foaming industry by using protective mechanism of safeguard duty which has already started impacting local foam manufacturing companies as is evident from upward trend in import of foams driven by new compact packing technology.
"Such misuse of industrial provisions is heavily impacting existence and growth of local foaming industry which has larger stakes in India in terms of investment and employment," Assocham said.
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.
