Cracks appear in Morbi tiles exports as US mulls anti-dumping

Even before the US govt officially imposed anti-dumping duty on import of ceramic tiles from India, manufacturers in Morbi, the world's 2nd largest ceramics cluster, and feeling the heat of the anticipated levy.

They claim that at least 25% of orders from the US have been halted and more are likely after the announcement of the petition to impose anti-dumping duty moved before the US govt.

The US ceramic tiles business is heavily import dependent and India is one of the exporters. Lately, tile makers in the US have moved a petition seeking to impose anti-dumping duty on Ceramic Tiles imported from India. There are fears among US companies that they may have to end up paying heftier import levies if the duty is imposed in restropective effect. As a result, many have curently halted orders to India, explained KG Kundariya, former president, Morbi Ceramic Association.

On May 10, the US Department of Commerce announced the initiation of antidumpingduty and countervailing duty and countervailing duty (CVD) investigations of ceramic tiles from India, according to the department's website.

Dispatches to the US have been completely halted from Morbi. Unless there is greater clarity on the duties that are likely to be imposed an importer will not risk paying additional duties on their purchases. As a result, the majority of orders are on hold,” said Nilesh Jetparia, ex-president, Morbi Ceramic Association.

The US accounts for 8-9% of total exports of Ceramic tiles and other products from Morbi, according to industry estimates. On average, Morbi ships about 800 containers of ceramic tiles to the US every month.

At a time when the Red Sea Crisis has disrupted global trade with delayed shipments and rising shipment costs, Morbi's ceramic manufacturers are feeling the heat of uncertainty when orders are getting temporarily halted by US-based manufacturers.

Morbi has around 800 ceramic tiles manufacturing units and exports worth Rs 19,000 CR to 180 countries including the US, Saudi Arabia, UAE, Iraq, Israel, Taiwan and to European nations, among others.