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Tata Chemicals, GHCL Shares in Focus; Govt Sets Minimum Import Price for Soda Ash

Updated on: Jan 1, 2025, 4:53 PM IST
Govt sets ₹20,108/MT minimum import price for soda ash, effective till June 30, 2025, to support local producers and stabilise domestic industries.
Tata Chemicals, GHCL Shares in Focus; Govt Sets Minimum Import Price for Soda Ash
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Shares of Tata Chemicals and Gujarat Heavy Chemicals (GHCL) are expected to remain in focus on January 1, 2025, following the government’s announcement of a minimum import price (MIP) for soda ash.

New Policy on Soda Ash Imports

In a notification issued by the Directorate General of Foreign Trade (DGFT), the import policy for soda ash has been revised from “Free” to “Restricted.” Additionally, the government has set a minimum import price (MIP) of ₹20,108 per metric ton (MT). 

This policy change aims to stabilise the domestic market and support local producers by limiting the influx of cheaper imported soda ash.

Timeline for Implementation

The new import restrictions will remain in effect until June 30, 2025. After this period, the import policy is expected to revert to “Free” on July 1, 2025, unless further amendments are made.

Impact on Industries

Soda ash, a critical raw material, is extensively used across various industries, including:

  • Glass Manufacturing: A major consumer of soda ash for production processes.
  • Chemical Production: A key component in multiple chemical formulations.
  • Detergent Industry: Used in the production of cleaning and detergent products.

The government’s decision to introduce an MIP is expected to safeguard domestic producers from competitive pricing pressures while ensuring a stable supply chain for these industries.

Stock Performance and Share Holding Patterns 

On January 1, 2025, Tata Chemicals share price (NSE: TATACHEM) traded down by 0.52%, at ₹1,044 at 10:01 AM (IST). According to BSE data, the stock recorded a trading volume of 4403 shares, resulting in a turnover of ₹45.93 lakh.

As of September 30, 2024, promoters held a 33.19% stake in Tata Chemicals, while Foreign Institutional Investors (FIIs) owned 19.25%. Domestic Institutional Investors (DIIs) held a 22.67% stake in the company.

Whereas Gujarat Heavy Chemicals share price (NSE: GHCL) dropped by 1.55%, reaching ₹712.85 at 10:07 AM (IST). According to BSE data, the stock recorded a trading volume of 0.19 lakh shares, resulting in a turnover of ₹1.39 crore.

As of September 30, 2024, promoters held a 19.03% stake in Gujarat Heavy Chemicals, while Foreign Institutional Investors (FIIs) owned 25.70%. Domestic Institutional Investors (DIIs) held a 9.79% stake in the company.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jan 1, 2025, 11:54 AM IST

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