DMAI Page: Doubling of exports of Colorants

Excerpt: There is an imperative need to kickstart production of disperse & reactive dyes intermediates (mainly Naphthalene Derivatives). This will result in increase in exports in the two segments immediately

In one of the meetings held recently with the Dept. of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers in Mumbai regarding doubling of growth in key business segments of the dyestuff industry i.e. Reactive Dyes and Disperse Dyes, a few constructive and relevant suggestions were offered, gist of which is as under :

i) There is an imperative need to kickstart production of disperse and reactive dyes intermediates (mainly Naphthalene Derivatives). This will result in increase in the exports in these two segments immediately.

In the meanwhile, care should also be taken not to curb imports of key building blocks and intermediates, which will result in exports of high value added specialty chemicals.

ii) Actively encourage production of “must have' chemicals.

iii) For every Anti-dumping Investigation, current price is to be considered along with price during the period of investigation. Anti-dumping duties are levied on the basis of historical prices in some chemicals, which are totally out of sync with the current prices artificially inflating the cost for exportable products thereby making them uncompetitive.

iv) Reintroduce grants for up-gradation of CETPs, whereby new machineries can be added to the existing facilities, which, in turn, will help in effectively treating the potentially hazardous waste generated in the manufacture of some of the intermediates. This will also help in protecting the massive investments in the existing industrial estates.

v) For new industrial estates, there should be a time-bound commitment from the local authorities to put proper infrastructure in place before allocating land to the industry.

vi) To supplement the efforts of export promotion councils and such other bodies, grant of MDA/MAI is to be enhanced to sector specific National Industry Associations. This will undoubtedly result in increasing exports in a big way, especially in our colorant industry.

Another important suggestion put forward was as to how to incentivise R&D. It was proposed that the Government should fund R&D in universities of repute and CSIR laboratories. The benefits of this R&D should be offered to Indian Industry without any cost. The universities/CSIR labs can be the patent holders for this. Further, the holders of ISO 18001 certificates for environmental protection are to be given priority in the environmental clearance etc, as this certificate is most reputed and widely accepted quality certificate in the world. In the light of decreasing exports and increase in the imports thereby widening the trade deficit, we are sure, the above suggestions would be very much relevant to increase the exports of the colorant industry in the coming days. We are hopeful that the new Government. to be installed shortly at the centre would consider these suggestions favourably.