Anti Dumping Duty will only artificially increase the price and monopolize the market: FPTA

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Find the exclusive face to face discussion with Mr. A. Annamalai (Venkat), President of Federation of Paper Traders Association of India over issues.

Anti Dumping Duty will only artificially increase the price and monopolize the market: FPTA

03 JUNE 2018 | Delhi | The Pulp and Paper Times

A face to face discussion, The Pulp and Paper Times had with Mr. Venkat (President of Federation of Paper Traders Association of India (FPTA) on 03 June 2018.

Q. What are the major issues are being faced by the Paper traders? Would you like to elaborate the forcing reasons behind the memorandum, of which FPTA is going to file with Government of India on ‘not levying anti dumping duty’ on import of paper?

A. Domestically our industry is producing only 3,00,000 Metric Tonnes (MT) coated paper against our total demand of 8,00,000 MT. So levying of anti dumping duty on a product, which is predominately dependent on imports, will only artificially increase the price and monopolize the market. It will be a burden to the common man. FPTA opposes anti dumping duty on coated paper, especially when domestic producers are not able to satisfy the domestic Paper demand. We support anti dumping duty if domestic paper production is in sync to the demand.

Q. How much FPTA is satisfied with GST implementation and its compliances as most of the paper traders’ prefer traditional working culture?

A. FPTA has gone on record and we were one of the first trade body, who has openly said that we support GST. Of course like any other businessman, trade or industry, we did have some initial hiccups and we continue to have hiccups. Our traders are slowly learning how it has to be done? I think may be in few months from now it will be fully cared. Also, we have got no issue because ‘Input Tax Credit’ is being taken seamlessly. But going ahead once GSTR 1, 2, & 3 fully operational than we will have to see. Now the Government is also promising very simple structure for filing and they are promising that it could be a single return also. We are eagerly waiting for changing.         

Q. What are the paper grade being imported to India? How much growth do you see in paper industry?

A. Statistics are saying that overall growth could be anywhere between 6.5 to 7 percent, it includes packaging grades and writing & printing; they all are growing at different rates. As to import of paper, predominately coated paper and some high end packaging grades are coming to India. Newsprint was being imported to large extent now local mills seem to be a preferred choice for a time being.     

Q. Paper market is very niche market and having very less contribution to India’s GDP figure. Do you think that Government is giving due importance to paper industry?

A. See, Paper is a medium spread education and to take a product to a consumer safely. Government is giving due importance to our industry we guess. But maybe it is not getting the kind of attention which our infrastructure should get.

Q. Do you think that Traders need education or kind of training for smooth functioning under GST regime?

A. We have very important sub-committee in FPTA which is called ‘GST & Taxation committee’. This committee is doing extra-ordinary service for the traders and also FPTA has launched an ‘APP’, any questions related to paper industry is being posted in the App. We have a team of very experience people who clarify or reply to our members. Our all 35 association are conducting seminars on GST.   

Q. Do you think that increasing unsecured credit for paper trading may turn harmful?

A. Unsecured Credit and Return on Investment are admissibly low; these are two major problems for a trade. We are motivating our trade members to be careful while extending credit and work with some reasonable margin to avoid internal competition.

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