Basic Chemicals, Cosmetics & Dyes Export Promotion Council (Chemexcil): Dyes & Intermediates exports surged in APRIL-DECEMBER 2021
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09 February 2022, Mumbai:
From April-December 2021, dyes and intermediates exports surged by 25 per cent as demand from international markets increased. As per data by Basic Chemicals, Cosmetics & Dyes Export Promotion Council (Chemexcil), India’s dyes exports touched 4.08 lakh MT from April to December 2021, compared to 3.26 lakh ton in the same period of 2020.
Gujarat accounted for an estimated 70 per cent of dye and intermediate production in the country, says Bhupendra Patel, Chairman, Gujarat region, Chemexcil.
While dye exports surged, dye intermediates declined during the same period. Reduction in exporters incentives under the duty drawback scheme and the MEIS scheme made manufacturers less competitive in the international market, adds Patel.
Even though April-December exports surged, manufacturing capacities are currently underutilized for dyes and intermediates manufacturers, owing to steep rise in raw material costs.
Rise in raw material costs by 60 per cent has increased exporters’ costs of operations. This has also reduced their capacities, adds Yogesh Parikh, President, Gujarat Dyestuff Manufacturers’ Association (GDMA).
With textile industry sales taking a hit, the overall demand for dyes have also declined.
Export demand has also gone down due to the Chinese New Year holiday across China, Hong Kong and other countries, Parikh adds.
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