2 RPG cos clash over safeguard duty

CALCUTTA, April 14: Two R P Goenka group companies are on the warpath over the imposition of safeguard duty on import of carbon black -- one...

CALCUTTA, April 14: Two R P Goenka group companies are on the warpath over the imposition of safeguard duty on import of carbon black 8212; one is fighting for, while the other is fighting against, it. While Phillips Carbon Black has appealed to the director general safeguards, R K Gupta, to impose a safeguard duty for four years, Ceat Tyres, another group company, has protested against it.

However, neither is fighting the case individually. They are members of separate industry bodies. Phillips Carbon Black has asked for a safeguard duty on behalf of the Association of Carbon Black Manufacturers ACBM. However, Chemical amp; Allied Products Export Promotion Council has dismissed the issue noting that it is misconceived. Ceat Tyres is a member of this export promotion council.

Some six companies produce carbon black, obtained from petroleum. Manufacturers of rubber goods, which include the tyre industry, are the major consumers of carbon black.

Phillips Carbon Black, along with three other companies 8211;Cabot India of Mumbai, Hitech Carbons of Renukoot and Oriental Carbon amp; Chemicals of Ghaziabad 8212; allege that serious injury has been caused to the domestic producers owing to increased imports of carbon black.

Chairman of the rubber products panel of Capexil MF Vohra dismissed the contention saying that it quot;does not rely on factsquot;. Instead, he pointed out that when international prices of carbon black have fallen owing to an unprecedented slide in petroleum prices, local manufacturers have failed to react.

In a letter to the safeguard directorate, he said, quot;The manufacturers of carbon black in the international market reflected the slide in the oil prices by reducing their prices of carbon black, whereas our domestic producers are yet to reduce their sale prices .quot; However, Vohra added that carbon-black producers reacted quickly when prices petroleum prices shot up in 1995-96.