Tata Chemicals Share: Shares of Tata Chemicals Limited and Gujarat Heavy Chemicals Limited (GHCL) witnessed a strong rally of more than 8 percent today on December 31. Actually, the government has announced the minimum import price for soda ash. After this news, there is heavy buying in the shares of both the companies. Shares of Tata Chemicals are currently trading at Rs 1057 with a gain of 2.51 percent. At the same time, GHCL has gained 8.44 percent and is trading at Rs 729.80.
What is the government’s decision?
The Directorate General of Foreign Trade said in a notification that the import policy for soda ash has been changed from ‘Free’ to ‘Restricted’ and the minimum import price is Rs 20108 per metric tonne. DGFT said that this scheme will remain in force till June 30, 2025.
Soda ash is a vital component for many industries, including glass manufacturing, chemical production, and detergent industries. The government’s intervention has been aimed at stabilizing the domestic market and supporting local producers.
Further, the notification states that the existing free import policy will be applicable again from July 1, 2025, unless any further amendments are made in it. This development impacts many sectors that are dependent on imported soda ash.
At present, Chinese companies are dumping large quantities of soda ash in India. Nirmal Bang Securities says that currently the prices of soda ash in China are 200 to 220 dollars per tonne. Now, due to the government’s action, domestic companies can get a benefit of up to 20 percent.
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