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.
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.
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.
Soda ash, a critical raw material, is extensively used across various industries, including:
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.
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.
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Published on: Jan 1, 2025, 11:54 AM IST
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