The Indian government has proposed a ban on soda ash exports in an attempt to curb soaring prices. Inflation based on wholesale prices recently rose to 11.98% with an overall price increase of a third over the past 8m. This trend is being witnessed on global markets also. Solvay SA, the world's biggest producer, has warned of price increases of up to 50% owing to disappointing sales figures for the first half of 2008. By banning exports & forcing domestic soda ash producers to lower their prices, the Indian government is aiming to ease raw material shortages that are presently affecting end-use markets. Should the ban go ahead, however, it may have little impact on domestic soda ash producers such as Tata. Market analysts from Emkay Global Financial explained: "India is a net importer & revenues from exports do not contribute a substantial share to these companies."
