Budget 2009-10     25-Jun-09
Budget Views
Abolish customs duty on soda ash
Mukul Somany, Joint Managing Director, Hindustan National Glass & Industries

Mukul Somany, Joint Managing Director, Hindustan National Glass & Industries seeks removal of customs duty on soda ash. Explaining his rationale for the request, Somany said, “Higher cost of inputs particularly Soda ash, which constitutes about 30% of cost of production of glass products, is one of the major factors contributing to higher cost of glass bottles. There are few major manufacturers' of soda ash in India that continue to rule the Indian market by fixing prices in line with the landed cost of imported soda ash. Imposition of safeguard duty on imports of soda ash from China will also result in increase in price of imported soda ash. Thus it is necessary that cost of soda ash, which is a major input cost in raw material segment, should be brought down to international level. This could be done by reduction in customs duty on imports, which will reduce the landed cost resulting in reduction in prices by indigenous manufacturers. We therefore request that customs duty on imports of soda ash be abolished.”

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