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India bolsters soda ash industry as minimum import price imposed to boost exports
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Shardul Nautiyal, Mumbai
January 03 , 2025
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In a strategic move to fortify the domestic soda ash industry and enhance India's export potential, the Government of India has imposed a Minimum Import Price (MIP) of Rs. 20,108 per metric ton (MT) on soda ash imports. The decision, formalized by a Notification from the Directorate General of Foreign Trade (DGFT), seeks to curtail underpriced imports that challenge the competitiveness of Indian manufacturers.
Soda ash is used in pharmaceutical application as an active pharmaceuticals ingredient (API), as excipient with desiccant properties in effervescent tablets, as high substance with pH-buffering properties in cosmetics.
The imposition of the MIP is a proactive measure to shield Indian producers from the influx of low-cost soda ash, predominantly from international markets. This policy ensures fair trade practices, stimulates domestic production, and positions Indian manufacturers for greater global competitiveness.
By stabilizing the domestic market, this move is expected to create a robust foundation for enhancing soda ash exports, contributing to India’s export growth targets under the Foreign Trade Policy (FTP) 2023. Indian exporters can leverage the strengthened domestic industry to meet rising global demand for high-quality soda ash, a key input for glass, chemicals, and detergent industries worldwide.
This policy, effective immediately and valid until June 30, 2025, revises the import conditions under Chapter 28 of the ITC (HS) 2022, Schedule-I for disodium carbonate (28362010): Previously restricted; imports now free only if valued at Rs. 20,108 or above per MT. Disodium carbonate, light (28362020): Shifted from “free” to “restricted,” with free imports allowed for consignments meeting the Rs. 20,108 threshold. Other Variants (28362090): Similarly restricted unless the price exceeds Rs. 20,108 per MT.
The MIP will remain in effect until June 30, 2025, after which the existing "free" import policy will be reinstated unless further extended. Stakeholders, including importers and exporters, are advised to align their operations with the updated guidelines to avoid disruptions.
“This initiative reflects the government’s commitment to promoting “Make in India” and ensuring a sustainable trade ecosystem that benefits both domestic producers and exporters. For more information, stakeholders can contact the DGFT via email at dgft@nic.in,” informed Santosh Kumar Sarangi, director general of Foreign Trade & Ex-officio additional secretary to the Government of India.
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