Chemical from Indonesia in antidumping net; probe begins

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NEW DELHI: India has initiated an antidumping probe into import of a chemical – used in food, beverages and pharma industry – from Indonesia.

The probe by DGAD – the investigating arm of the commerce ministry – would recommend imposition of antidumping duty if it is established that import of ‘Saccharin’ from Indonesia has caused material injury to the domestic industry.

The Directorate General of Antidumping and Allied Duties (DGAD) has said it has found “sufficient evidence” of dumping of the chemical from the southeast Asian nation.

The probe made its way on an application filed by Swati Petro Products Pvt Ltd, seeking imposition of antidumping duty on the imports.

“The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry…to determine the existence, degree and effect of alleged dumping,” it said in a notification.

DGAD will also recommend the amount of antidumping duty, which if levied, would be adequate to remove the injury to the domestic industry, it added.

Saccharin is used in various food and beverages, personal care products, table top sweeteners, electroplating brighteners and pharmaceuticals.

The period of investigation is April 2017 to March 2018. However, for the purpose of analysing the injury, DGAD would consider the data of previous three years – 2014-17.

Antidumping duties are levied to provide a level playing field to the local industry by guarding against cheap below-cost imports.

Imposition of antidumping duty is permissible under the World Trade Organisation (WTO) regime.

Indonesia is one of the major trading partners of India. The bilateral trade increased to USD 20.4 billion in 2017-18 from USD 17 billion in 2016-17. The trade is highly in favour of the southeast Asian nation, with trade deficit of USD 12.5 billion in 2017-18.