The Centre has initiated a probe into dumping of a chemical, used in agriculture and pharmaceuticals, by Indonesia, Malaysia, Thailand and Saudi Arabia. The Directorate General of Anti-Dumping and Allied Duties (DGAD) under the commerce ministry has found sufficient evidence of dumping of saturated fatty alcohols from these four countries.
Saturated fatty alcohols are mainly used in manufacturing of personal and homecare products besides pharmaceutical and agriculture-related items. These alcohols are also used in processing of paper, petroleum products, textile and leather.
The DGAD would recommend imposing of anti-dumping duty if it finds evidence that dumping has caused material injury to domestic players. After that, the commerce ministry will decide and take up the issue with the finance ministry for imposing anti-dumping duty. The application to impose the anti-dumping was filed by VVF India Ltd.
In March 2015, India had extended safeguard duty on saturated fatty alcohols which was first imposed for six months in August 2014, until February 2017. For the first year between August 2014 to August 2015, the safeguard duty was 20 per cent and between August 2015 and August 2016 it was 18 per cent. The duty was 12 per cent in the subsequent six months from August 2016 to February 2017.
Anti-dumping duties are levied to provide a level-playing field to Indian industry by guarding against cheap and below cost imports. These duties are WTO compliant when followed through a proper procedure.
The authority “hereby initiates an investigation into the alleged dumping,” the DGAD said in a notification. The agency has also been probing dumping of several other products such as fibres and steel from different countries.
