DGTR Proposes Two-Year Quota On Soda Ash Imports To Protect Indian Manufacturers

The Directorate General of Trade Remedies (DGTR) recommended imposing a two-year import quota on soda ash to safeguard domestic manufacturers from potential harm caused by a surge in imports. The trade authority suggested an initial quota of 754,992 tonnes in the first year, with a 5% increase to 792,740 tonnes in the second year.

The proposal, pending government approval, stems from an application by the Alkali Manufacturers Association of India (AMAI), representing major manufacturers like DCW, GHCL, Nirma, RSPL, and Tata Chemicals. Initially, the association had requested restrictions for four years. According to DGTR, soda ash imports increased by 89% from 517,653 tonnes in 2022-23 to 979,996 tonnes in 2023-24, with annualized imports reaching approximately 1.01 million tonnes up to September 2025.

While domestic manufacturers remained profitable and production recovered, the authority cautioned that persistent import growth could lead to serious injury. The domestic demand surge accounted for 494,371 tonnes of the 580,857-tonne increase, representing around 85% of the additional consumption. Despite improvements in capacity utilization and employment, weak profitability indicators were noted.

The proposed quota allocation aimed to distribute imports among various countries, including the US, Turkey, Kenya, and the European Union, with exemptions for certain developing countries and shipments under the Advance Authorisation Scheme. Soda ash, a key ingredient in glass, detergent, and chemical manufacturing, is widely used.

While downstream industries expressed concerns about increased costs and supply disruptions, the Department of Chemicals and Petrochemicals stated that domestic capacity could meet the demand. The DGTR's proposed restrictions would enable manufacturers to enhance efficiency, expand capacity, and bolster competitiveness.