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Chennai, Might 18 (IANS) Sulphuric acid, one of many predominant supplies used throughout key industries in Tamil Nadu (NS:) has regularly seen a significant dip in its provide within the State over the previous few years, inflicting an antagonistic influence throughout downstream industries equivalent to fertilizers, chemical, pharmaceutical, detergent, paper and pulp producers.
This scarcity of provide primarily because of the closure of Sterlite Copper manufacturing unit within the state has pressured many industries both to close down, lower manufacturing, or take a look at different costlier alternate options to outlive in Tamil Nadu.
Earlier than the Sterlite Copper closure, sulphuric acid, a by product of manufacturing was being equipped by the Thoothukudi unit to a significant chunk of the Tamil Nadu market. Sterlite Copper earlier than its closure was producing 1 million ton every year and contributing 8.3 per cent of the nation’s whole sulphuric acid manufacturing earlier than its closure. It was additionally catering to the wants of 27 sulphuric acid prospects as the biggest provider in southern India, with 95% market share in Tamil Nadu.
“This lack of provide to Tamil Nadu has additionally elevated the price of sulphuric acid phenomenally, from Rs 6 to Rs 7 per kg to Rs 20 to Rs 30 per kg, as a result of downstream industries are pressured to import their necessities from completely different nations,” says N.S. Venkatraman, former secretary of the Chemical Industries Affiliation (CIA), and an impartial guide.
Furthermore, regardless of the presence of three different sulphuric acid producing crops within the state, Inexperienced Star Fertilizers Restricted, Coromandel and Andra Sugar–downstream industries have been pressured to proceed to import as a result of many of the produce from these three crops are used for captive consumption.
The rising import of sulphuric acid and the regular enhance in its costs over time solely corroborates Venkataraman’s assertion.
Imports of sulphuric acid have been rising steadily from 9.46 lakh metric tonnes in 2017-18 to 19.21 lakh metric tonnes in 2021-22, a rise of practically 51 per cent.
The price per metric tonne too has shot up from Rs 11,000 in April 2018 to Rs 16,400 in April 2022, once more a hike of 33 per cent. And, the nation’s dependency on nations like South Korea, Japan, China is barely prone to develop within the coming years as rising demand will outstrip provides placing extra strain on the federal government’s exchequer.
“The issue for Indian downstream industries is additional compounded by the truth that there isn’t any viable various to sulphuric acid and therefore many of those industries are actually pressured to ponder investments into sulphur burning crops for his or her uncooked materials requirement. The availability facet constraints will get additional accentuated because the demand will increase from the present and newer industries.
“Sulphuric acid demand is forecasted to develop by 6 per cent to 7 per cent yearly,” contends Venkatraman.
Tamil Nadu-based Amrita Chemical substances, as soon as the nation’s prime exporter, producer and provider of sodium silica fluoride chemical compounds, potassium silica fluoride chemical compounds, with markets unfold internationally, together with the US, European Union, Japan, South Korea and Latin America, might be pressured to shut its operations on Might 31.
The rationale purely being its lack of ability to obtain sulphuric acid and different uncooked supplies at cheap prices in Tamil Nadu. To maintain its operations going, the corporate even tried to accumulate the required uncooked supplies from Odisha-based Paradeep Phosphates, however to no avail.
“Getting the required uncooked supplies from Paradeep Phosphates proved to be an unviable proposition and therefore we’re pressured to shut our operations. Given the excessive value of diesel and three,600 km of up and down journey from Odisha and different related prices, working the operation was turning out to be a loss-making train. The closure of the Sterlite copper plant destroyed my entire market and I’m unable even to fulfil my current orders. Now we have to pay heavy penalties for non-delivery and outsource a number of the work to his rivals to fulfill our current orders, at very excessive prices,” says Gopal, MD, Amrita Chemical substances.
–IANS
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