DGTR Recommends Two-Year Import Restrictions on Soda Ash to Shield Domestic Manufacturers

The Directorate General of Trade Remedies (DGTR), the trade remedy investigation arm of the commerce ministry, has recommended quantitative restrictions on the import of soda ash for a period of two years. The recommendation follows a probe launched after an application was filed by the Alkali Manufacturers Association of India (AMAI) on behalf of domestic producers including DCW Ltd, GHCL Ltd, Nirma Ltd, RSPL Ltd, and Tata Chemicals.

Soda ash is a vital industrial chemical used across multiple sectors, including the manufacture of detergents and textiles. According to the DGTR notification, the domestic applicants sought safeguard measures for four years to counter the impact of rising imports. The investigation concluded that imports increased in both absolute and relative terms, registering an 89 per cent jump in the 2023-24 period and remaining at elevated levels since.

The authority noted that the surge in imports was recent, sudden, sharp, and significant enough to threaten serious injury to the domestic industry. Consequently, the DGTR recommended safeguard measures in the form of quantitative restrictions to prevent serious injury and facilitate domestic industry adjustment over a two-year timeframe.

Under the recommended framework, the import quota for Year 1 is set at 7,54,992 metric tonnes (MT), while the quota for Year 2 will be 7,92,740 MT, bringing the cumulative quota for the two-year period to 15,47,732 MT.

Country-specific annual quotas have also been outlined in the recommendation. For the United States, the quota is 1,59,388 MT in Year 1 and 1,67,357 MT in Year 2, totaling 3,26,745 MT. Turkey has been allocated a quota of 1,28,697 MT in Year 1 and 1,35,132 MT in Year 2, aggregating to 2,63,829 MT. Imports from Iran and the UAE will have quotas of 1,10,948 MT and 1,16,495 MT respectively, with a cumulative allocation of 2,27,443 MT.

Other allocations include Russia with 70,289 MT in Year 1 and 73,803 MT in Year 2, totaling 1,44,092 MT. The European Union has been assigned a quota of 1,17,179 MT in Year 1 and 1,23,038 MT in Year 2, amounting to 2,40,217 MT. Kenya's allocation stands at 1,21,847 MT for Year 1 and 1,27,939 MT for Year 2, totaling 2,49,786 MT. China PR will have an annual quota of 46,487 MT in Year 1 and 48,811 MT in Year 2, aggregating to 95,298 MT. Allocations for all other countries are capped at 157 MT in Year 1 and 165 MT in Year 2.

The DGTR has specified that the annual quota for each country must be distributed across four quarterly tranches, with imports from any given country strictly prohibited from exceeding its designated quota within any single quarter.

"The recommendation for quantitative restrictions on soda ash imports highlights the regulatory mechanisms available to protect domestic manufacturing from sudden import surges. For businesses operating in sectors reliant on industrial chemicals like detergents and textiles, import quotas introduce a new layer of supply chain planning. Companies must closely monitor country-wise quarterly tranches and factor these trade measures into their long-term procurement and cost management strategies." — Dr. Shishir Gupta, Founder & CEO, StartupLanes