The government needs to relax import norms for boric acid as the current conditions are adversely impacting small and medium enterprises, ceramics industry said today.
It alleged that India has been imposing a "discriminatory" licensing regime on the import of boric acid.
All India Ceramic Glaze and Glass Frit (Mixture) Manufacturers Association said several sectors need boric acid for their end products or production process but because of the restrictions these industries are negatively impacted.
Easing of licencing regime and import restrictions on boric acid would help in enhancing the competitiveness of the industry and promote ease of doing business, it said.
"All imports of boric acid regardless of end use require the importer to be registered and seek specific license for shipments under the requirements of the Insecticides Act, 1968. However, domestic manufacturers of boric acid are not subjected to any procedures," it said.
Besides, boric acid is the only insecticide which when imported for non-insecticidal use has EXIM (export-import) policy restrictions, it added.
Indian customers who want to buy boric acid must first obtain an import permit from the Central Insecticide Board in order to import foreign boric acid, the association said in a statement.
"The right to import is only given to direct end users.
This greatly limits the ability of global suppliers to market boric acid in India," it added.
Boric acid is utilised in a broad cross section of industries from ceramics to building materials to the steel industry.
Further, it said that small manufacturers who neither have the capacity nor the ability to import on their own are compelled to purchase expensive domestic boric acid rendering them uncompetitive in the market.
During the recent visit of the United States Trade Representative, the issue was discussed with the commerce ministry officials.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.