Anti-dumping duty on Indian ceramics in UAE from today

While most industrial sectors slowly returning back to normalcy, Morbi’s ceramic units are bracing up for some tough times. The United Arab Emirates (UAE) has issued notification imposing anti-dumping duty of Indian ceramic products which comes into force from Saturday. The Dubai customs has also issued similar notification and other gulf countries are expected to follow the suit.

The Gulf Cooperation Council (GCC) in it’s order dated April 20 had imposed anti-dumping duty ranging from 40% to 106% on Indian ceramic products. The GCC is a political and economic union of all Arab countries except Iraq and represents countries like Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates. The anti-dumping duty has been imposed for five years which will make it impossible for Morbi exporters to do business with gulf countries.

Like many other sectors, Morbi’s ceramic industry is also under financial crisis because of the global lockdown on account of cornovirus pandemic.

Nilesh Jetparia, president of Morbi Ceramic Association said, “There has been not production since last two and half months as there is no demand in domestic as well as international market. The major markets are closed. Now, we are looking at the government to provide us some relief so we can complete in international market.”

Currently, only 280 out of the 900-odd units have started production in Morbi, the biggest ceramic cluster of India. With 35-40% of exports to Gulf countries.

According to industry experts, when full fledge production starts, nearly 400 units which were exclusively exporting to gulf
countries will be forced to cut it’s production by 60% resulting in job losses. “The demand in domestic market is not expected to rise till the construction industry begins work,” Jeparia added.