Two domestic polyvinyl chloride (PVC) makers have petitioned the government seeking imposition of quantitative restrictions on imports of PVC suspension resins from China for two years, to safeguard the interests of local players.

PVC is used to make pipes and fittings, flexible hoses, films, sheets, bottles, profiles, wire & cables and footwear, among others.

Also read: Big states turn aggressive in pursuit of $1-trn GSDP goal

Stating that there had been an unprecedented increase in imports of PVC suspension resins with residual VCM above 2 PPM in 2021-22 (313% over FY21), Chemplast Cuddalore Vinyls and DCW have said that if the surge in imports from China cannot be checked, the domestic industry will see piling up of inventories.

Reliance Industries, DCM Shriram and Finolex Industries are the other major producers of PVC in the country.

“It is evident that serious injury to the domestic industry is imminent, should remedial measures not be invoked. Chinese imports have alarmingly increased to a level where monthly imports already exceed annual import volumes in the past,” Chemplast and DCW said in the joint petition.

The domestic industry is facing significant price depression with the surge in imports. They have reduced prices as idling of production facilities is not the first option with the producers of the product. The domestic industry is already facing rising inventories, though they are not at “dangerous levels”.

“The imports are priced below the selling price of the domestic industry. Therefore, if the imports are not checked, the demand thereof would increase. In such a situation, the domestic industry would face an accumulation of inventories,” they added.

Also read: India@75: Economy must run faster to address socio-eco problems

Post December 2021, the prices of imports from China have been reducing continuously. Further, if the quotations received from Chinese producers are seen, it would be noted that the prices of imports have reduced even further.

“As against a price of $1,613 per tonne being quoted in March 2022, the prices being quoted at present are as low as $1,300 per tonne. Such low prices would force the domestic industry to reduce its prices even further,” they said.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.