In a significant move aimed at regulating the import of soda ash, the Ministry of Commerce and Industry, through the Directorate General of Foreign Trade (DGFT), on December 30, 2024 has announced the imposition of a Minimum Import Price (MIP) on Disodium Carbonate (Soda Ash). This decision, notified on December 30, 2024, will be effective until June 30, 2025.
Key Details of the Notification
The notification revises the import policy for soda ash under the following ITC(HS) Codes covered under Chapter 28 of the ITC (HS) 2022:
- 28362010 – Disodium Carbonate, Dense
- 28362020 – Disodium Carbonate, Light
- 28362090 – Other
Previously, these items were categorized under the ‘Free’ import policy, which allowed unrestricted import. However, under the new regulation, the import of these items is now restricted unless the Cost, Insurance, and Freight (CIF) value is at least Rs. 20,108 per Metric Ton (MT).
What Does This Mean for Importers?
- Minimum Import Price (MIP): The government has set the MIP for soda ash at Rs. 20,108 per MT. This means that imports of disodium carbonate, in any form, cannot be made below this price.
- Effective Period: The new restrictions and MIP will be in effect until June 30, 2025.
- Future Policy: After June 30, 2025, the existing ‘Free’ import policy will resume, unless there are further amendments.
Why the Change?
The move is part of the government’s broader strategy to regulate the market for soda ash and protect domestic manufacturers from potentially unfair pricing practices that could undermine local production. By imposing a minimum price on imports, the government aims to create a level playing field for domestic industries.
The DGFT’s notification reflects the government’s continued efforts to monitor and control imports and ensure that trade practices support domestic industries. Importers and businesses relying on soda ash will need to adjust their strategies to align with the new pricing regulations.
