India Proposes 2-Year Restrictions on Soda Ash Imports After 89% Rise in Shipments!

The Directorate General of Trade Remedies (DGTR) has recommended restrictions on soda ash imports for two years, following an investigation into the increase in overseas shipments, according to Business Standard news report.  

DGTR has proposed an annual import limit of 754,992 tonnes in the first year and 792,740 tonnes in the second year. The second-year quota is 5% higher than the first.  

The investigation was initiated following a request from the Alkali Manufacturers Association of India (AMAI), representing DCW, GHCL, Nirma, RSPL and Tata Chemicals. The association had requested restrictions for four years. 

Imports Increase by 89% 

Soda ash imports increased from 517,653 tonnes in 2022-23 to 979,996 tonnes in 2023-24, marking an 89% rise. Annualised imports for January-September 2025 were estimated at 1.01 million tonnes. 

DGTR found that domestic demand increased by 580,857 tonnes between 2022-23 and the latest period examined. However, domestic manufacturers' sales increased by only 86,486 tonnes. Imports accounted for the remaining 494,371 tonnes, or approximately 85% of the additional demand. 

Domestic Manufacturers Face Price Pressure 

Landed import prices declined by 39% during the period examined, while domestic selling prices fell by 34%. The industry's cost of sales decreased by 18%. 

Domestic production, sales and capacity utilisation had recovered, and employment reached its highest level. However, profitability weakened after 2023-24. Return on capital employed fell to an index of 71, compared with a base of 100 in 2020-21. 

Country-Wise Import Limits 

The first-year quota includes 159,388 tonnes for the US, 128,697 tonnes for Turkey, 121,847 tonnes for Kenya and 117,179 tonnes for the European Union.  

Russia and China have been allocated 70,289 tonnes and 46,487 tonnes, respectively. Imports will be regulated through quarterly allocations. 

The restrictions cover natural and synthetic soda ash in light and dense forms. Certain developing countries and eligible imports under the Advance Authorisation Scheme for physical exports are proposed to be exempt. 

Impact on User Industries 

Soda ash is used in glass, detergents, sodium silicate and chemical manufacturing. User industries raised concerns about availability, higher costs and production disruptions.  

The Department of Chemicals and Petrochemicals said domestic capacity and planned additions would help meet demand. DGTR noted that the two-year period would give manufacturers time to reduce costs, improve capacity utilisation and expand production. The final decision rests with the government. 

Read More: Ministry of Communications Plans Second Telecom PLI Scheme with Focus on Local Manufacturing! 

Conclusion  

The proposed restrictions will remain subject to government approval. If implemented, the quotas will apply for two years, with a higher import limit in the second year. 

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