Ahmedabad: The prices of dyestuff- the chemical substances used to impart colour to textiles, paper, leather, and other materials, in neighbouring Pakistan has more than doubled following complete stop on export from India after announcement of abrogation of article 370, Senior office bearers of Basic Chemicals, Cosmetics and Dyes Export Promotion Council (Chemexcil) and the Gujarat Dyestuff Manufacturing Association (GDMA) today informed.

Addressing a press conference on the occasion of the inauguration of the 9 th Asia International Dye Industry, Pigments and Textile Chemicals Exhibition (Interdye Asia 2019) at the Gujarat University Convention and Exhibition Center here, Chairman of Chemexcil, Ajay Kadakia and GDMA President Yogesh D Parikh said that India, the second largest exporter after China with the total dyestuff production of around 1 lakh tons per annum exported around 50 to 60 thousand tons. Of this around 12000 tonnes or around 20% in volume terms was exported to Pakistan alone.

‘Since the announcement of the abrogation of article 370 in August this year the trade with Pakistan has completely stopped and it has also resulted in zero export of dyestuff to the neighbouring country. This has more than doubled the prices there. In price terms Pakistan which used to import around 1000 tons of dyestuff every month, imported US$500 million of the chemicals per annum while the total export of India across the globe was around $2.8 billion,’ they informed.

Gujarat which along with Maharashtra contributed for most of the dyestuff production in India, produces around 50 thousand tons of it per annum of which over 25 thousand tons were exported,’ they said.

Kadakia said that Pakistan mostly used to import reactive dyestuff, which was produced by around 90% of the around 1100 odd dyestuff units in Gujarat. The other big importers were Bangladesh, Turkey and Indonesia.

To a query he also said that the general economic slowdown in India and globally has impacted the export of dyestuff also. ‘India which was seeing an increase in export at the rate of 15 to 20% earlier on is likely to see a slower growth in the current fiscal as by September this growth was only 5 to 6%,’ Kakadia said.

He said that India which was a net importer of dyestuff till 1975 was now second largest exporter and producer after China. In manufacturing of cotton based dyes it was way above China which also imports it from India.

To another query Kakadia said that the GST regime has benefited the exporters. He however agreed that there was a slowdown in the domestic textile industry also.

DeshGujarat