Chemical firms knock at Centre’s door for antidumping steps
Domestic firms from the organic chemical and petrochemical sectors are making a beeline to the Government seeking antidumping probe against Chinese imports.
Over the last ten days, the Directorate General of Trade Remedies (DGTR) has initiated antidumping investigations or recommended antidumping duties against a dozen different chemical, petrochemical and bulk drug products (mostly from China).
Anti-dumping actions
“I expect many more antidumping actions to happen on chemical products from China as it is a very challenging time for the industry. The last six months have been terrible and that is why you are seeing domestic industry approaching government on large numbers,” the CEO of a chemical company.
“The level of imports from China vary from chemical to chemical. But across the board, margins and volumes are affected for domestic firms”.
It was highlighted India accounted for just 3% of global capacity, while China enjoyed 50%.
India’s chemical imports from China has surged to about $15.5 billion in April January from $ 11.3 billion in AprilJanuary 202021.
While chemical imports at dumped prices from China is matter of concern, the issue is not that worrisome for bulk drug imports from China.
Ankit Kansal, Chairman of PHDCCI’s Healthcare Pharmaceutical Manufacturing Committee and Head of Special Projects, Mankind Pharma, said local pharmaceutical firms faced growing competition from Chinese imports in recent years, impacting pricing and market share.
To address this, India has implemented measures like the production linked incentive scheme and plans for API manufacturing parks to boost domestic production, he said.
Mr. Kansal said local API companies may face higher input costs this year due to rising raw material prices and supplychain disruptions. The challenges could impact production costs and overall competitiveness in the market.
India’s API imports of from China rose from $ 2.17 billion in AprilJanuary 2021 to about $2.72 billion in AprilJanuary 2024.
(The writers are with The Hindu businesslines)