The paints industry has sought rationalisation in import duty for Titanium dioxide, one of the key raw materials to make paint.
"Currently, it attracts an import duty of 10 per cent against 7.5 per cent for other raw materials used in paint manufacturing. We have requested the government to reduce this duty to 7.5 per cent," Abhijit Roy, MD & CEO Berger Paints, said on the sidelines of AGM of The Indian Paint Association.
"With the depreciation of rupee, the impact got worse. If government rationalise the d
ty for Titanium dioxide, it will help in negating the impact of rupee depreciation on our margins," he said.
IPA president R V Akula said the average increase in cost was 4.8 per cent, while price increase carried out by industry is just 3.8 per cent.
India imports Rs 4,000 crore worth of Titanium dioxide mostly from Europe and China.
Akula said industry has taken cautious approach in hiking price with slowdown in demand.
Speaking about quality standards, Akula said the industry body has submitted recommendations on maximum limit of lead in paints to Bureau of Indian Standards.
India has not been able to come out with regulations on use of lead in paints at a time when globally, many markets have totally banned the substance, he said.
"We want BIS should come out with separate norms for both industrial and decorative segments," he added.
