Badly battered by the severe slowdown, the domestic float glass industry, has sought the imposition of anti-dumping duty on glass imports from Pakistan, Saudi Arabia, and the United Arab Emirates (UAE). A number of float glass lines came up in West Asia during the boom period, thanks to cheap funds and the extraordinarily low cost of gas. These companies are now selling glass in India, shipped mainly through Mumbai, at prices lower than their cost of production. The price of gas for these float glass makers is just about $0.75 a million British thermal unit (mBtu), whereas it is about $16.5 for Indian manufacturers. For every dollar difference in gas pricing, the impact on the price of glass is $7-8 a ton. Glass manufacturers in Saudi Arabia and the UAE enjoy not only cheaper gas, but their interest costs – called for administrative charges – are as low as 2 per cent. Another element of cost as far as glass is concerned is the cutting, packing and transporting charges and this adds nearly 40% to the cost of naked glass, said industry sources adding that the Indian float glass industry estimates that the CIF (cost, insurance and freight) should be $260-270 a ton, whereas glass from West Asia is available for $120-130 in Mumbai.
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