homeeconomy News

As imports surge, refined copper producers pitch for anti subsidy measures

As imports surge, refined copper producers pitch for anti-subsidy measures

As imports surge, refined copper producers pitch for anti-subsidy measures
Profile image

By Anshu Sharma  Sept 12, 2019 1:08:09 PM IST (Updated)

The association believes that the imbalance created in trade by various subsidy schemes offered by ASEAN nations exporting copper wires to India is affecting the domestic industry.

The refined copper producers’ association, which includes Hindalco, Vedanta and Hindustan Copper, is gearing up to pitch for an anti-subsidy investigation against copper wire imports from ASEAN countries like Indonesia, Malaysia, Thailand, and Vietnam, sources told CNBC-TV18.

Recommended Articles

View All

The association believes that the imbalance created in trade by various subsidy schemes offered by ASEAN nations exporting copper wires to India is affecting the domestic industry. Indian copper wire and cables industry contributes over 10 percent of the copper demand in India.
Governments of Indonesia, Malaysia, Thailand and Vietnam have come out in strong support of their manufacturers/exporters based in these countries. Malaysia, Thailand and Vietnam do not have copper smelter.
"It is to be noted that value addition criterion is achieved on a regional cumulative basis, while some of the subsidies available to certain countries in ASEAN block having natural resources, is flowing to the benefit of all the countries in the block,” said an industry source.
India has seen a surge in imports from 4,000 MT in 2009 to 1.5 lakh MT in FY19. In 2010, ASEA free trade agreement was signed and it was decided to gradually reduce import duty on copper wires less 6mm from 5 percent to 0 percent in 2017.
“These countries are offering subsidies to copper wire manufacturers in their respective countries, which is encouraging investment in these countries for ultimate export to India, thus adversely impacting domestic manufacturing, especially at a time when Indian industry has invested heavily for upgrading capacity, as well as improving quality to global standards,” said another source, who did not want to be named.
The surge in imports has resulted in financial and market share losses and hence anti-subsidy investigation is sought by the refined copper industry for a level playing field.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng