The Hindu Business Line : Indian guar gum, splits lose Chinese market to Pakistan

Pak advantage
China's custom tariff on Indian guar gum powder was 15 per cent while it was nil on the commodity coming in from Pakistan.
Indian guar splits attract a five per cent import tariff while Pakistan enjoyed a nil tariff advantage for the same item.

Kolkata June 26

Facing uneven competition from Pakistan in the Chinese market owing to a special tariff advantage being enjoyed by Pakistan, Indian exporters of guar gum powder and guar splits have urged the Government to take up the matter with the Chinese authorities concerned.

Pak difference

Mr Pradeep Kr Shaw, Chairman of Shellac and Forest Produce Export Promotion Council (Shefexil), told Business Line that China's custom tariff on Indian guar gum powder was 15 per cent while it was nil on the commodity coming in from Pakistan.

Similarly, Indian guar splits attract a five per cent import tariff, while Pakistan enjoyed a nil tariff advantage for the same item. India and Pakistan are said to be the two major processors and exporters of guar gum in the world today. Small quantities of the commodity are also being exported by countries such as Morocco, Sudan etc.

According to trade sources, China also imports guar gum powder and splits of some 25,000-30,000 tonnes annually.

Mr Shaw said it was, however, still not clear whether China had a special bilateral trade agreement with Pakistan, under which such a tariff concession could be easily given. Pointing out that the existing duty differential was not quite logical, Mr Shaw said a reference could perhaps be made at the Government level to the Chinese authorities to do away with the duty difference, and take the duty for both guar gum and splits to a uniform five per cent.

According to him, guar gum powder was nothing but pulverised or powdered guar splits.

According to Mr S.K. Sharma of Lotus Gums & Chemicals, Rajasthan, India's share in the world market was 70 per cent and China's 25 per cent. Guar crop is mainly cultivated in Rajasthan (highest producer), Haryana, Punjab and Gujarat.

More Stories on : Exports & Imports | Excise and Customs | Commodities

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
NCDEX inks pact with polymer portal

AP posts record paddy procurement of 1 cr t

STC floats tender to import 10 l tonnes wheat

`Low' materialises, to decide monsoon onset in Delhi

Arecanut price dips

Centre assures steps to curb illegal areca import

Resistance from buyers hits spot rubber

AP to have horticulture university

Stagnant output

Cardamom plants hit by rains, gale

Pepper futures decline

New initiative

Indian guar gum, splits lose Chinese market to Pakistan