Why Modi government has launched an anti-dumping probe against China
What's the story
The Indian government has launched an anti-dumping investigation into the import of ethyl chloroformate from China. The move comes after a domestic producer, Paushak, alleged that the chemical was being sold at unfairly low prices. Ethyl chloroformate is an organic chemical intermediate widely used in pharmaceutical and agrochemical manufacturing. The Directorate General of Trade Remedies (DGTR) initiated the probe on Paushak's application.
Probe
Investigation period and evidence collection
The DGTR will investigate if ethyl chloroformate is being dumped in the Indian market and if anti-dumping duties are needed to offset the alleged injury to domestic producers. If confirmed, this probe could result in import duties, increased costs for the drugmakers and agrochemical firms, while protecting local producers. The investigation period will be from October 2024 to September 2025, with the evidence from exporters, importers, and other interested parties considered before recommending any duties.
Claim
Preliminary assessment and other cases
Paushak, India's sole maker of ethyl chloroformate, claimed that the rising imports from China had led to price suppression and also weakened profitability. The DGTR claimed that its preliminary assessment indicated the dumping margin appeared to be above the de minimis level. In another case, the DGTR also launched an anti-dumping investigation into hexamine imports from China, Russia and UAE.