GHCL, a soda ash producer, urged the government to impose anti-dumping duties on cheap imports from China and other exporters, as a flood of low-cost shipments erodes domestic producers’ margins and threatens industry sustainability.
Import Surge Squeezes Domestic Margins
India’s synthetic soda ash producers are facing mounting pressure as import volumes surge, with their market share almost doubling to 25–26%, up from a historical 15%. The influx is largely driven by China, which controls 45% of global soda ash capacity and recently added over 10 million tonnes in Inner Mongolia, creating a global surplus. “We have approached the government for protection from dumping by global players. We are seeking their support,” said R.S. Jalan, Managing Director, GHCL.
India accounts for just 6% of global soda ash demand, but consumption here is growing at around 6% annually, well above the global average. However, domestic producers remain disadvantaged compared to countries with abundant natural soda ash reserves such as China, Turkiye, the U.S., and Kenya.
DGTR Reviews Anti-Dumping Petitions
The Directorate General of Trade Remedies (DGTR) is currently examining petitions filed by Indian manufacturers, including GHCL, with an oral hearing expected later this month. Jalan stressed that anti-dumping duties are critical to offset the damage from predatory pricing practices.
“After the minimum import price, the only step left is the anti-dumping duty. It will be a scientific process, where the quasi-judicial body will assess margin erosion, benchmark prices, and the scale of imports,” he explained.
Minimum Import Price Offers Limited Relief
India extended the minimum import price (MIP) of ₹20,108 per tonne for soda ash until December 31, but Jalan noted that the measure provides only “some small benefit” since sub-MIP inflows continue. Initially imposed in 2023, the MIP aimed to check dumping but has struggled to counteract the effects of the global surplus. “At this point, we are seeing quite a big surge in imports,” Jalan said. “Anti-dumping duty is only a short-term protection. The real solution is for Indian players to build cost competitiveness and face global competition without compromising margins,” Jalan added.
Strong Demand Keeps Capacity Utilisation High
Despite pricing pressures, GHCL continues to operate at 98% capacity utilisation, reflecting resilient domestic demand. The company holds a 26% share of the Indian market and has partially offset margin pressures through operational efficiency.
“Last year, the soda ash price dropped by 19%, but our margins declined by only 5%. We covered the 14% gap through efficiency and cost discipline,” Jalan said. For Q1 FY26, GHCL reported a 4% year-on-year decline in standalone net profit to ₹145 crore, while revenue fell 3% to ₹823 crore due to weaker realisations.
Betting on Solar Boom and Export Growth
GHCL is positioning itself to benefit from India’s solar energy expansion. This growth could add over 1 million tonnes of soda ash demand in the next five years. This growth will be driven by the rapid scale-up of solar glass manufacturing. India is targeting 300 GW of capacity, up from 119 GW currently.
To capture this opportunity, GHCL is doubling its production capacity to 2.2 million tonnes per year through a ₹6,500-crore greenfield project in Gujarat. “Total demand growth will exceed a million tonnes in the next five years, and we are setting up a plant of a million tonnes,” Jalan said.
India’s extension of anti-dumping and PLI support for the solar glass industry will further boost demand. GHCL also plans to target export markets such as Bangladesh and Sri Lanka alongside domestic customers.
Global Demand Revival Could Ease Import Pressure
Jalan noted that a revival in global demand—particularly in Europe and China—could naturally reduce the import glut. “If global demand rises even 1%, it will help the domestic industry by reducing inflows into India,” he said.
Calling soda ash a cyclical business, Jalan highlighted GHCL’s four decades of operational expertise as a key advantage. “Margins are under pressure, but demand growth is strong. Large investments are underway in solar glass, and we are well placed to capture that opportunity,” he added.
As reported by businessworld.in, China’s soda ash industry grew 10–18% in 2023–24, far outpacing the global average of 3–4%. Some of this capacity has been absorbed domestically. Jalan expects the remainder to enter global markets within one to two years.
