The Indian government has imposed anti-dumping duties on imports of Vitamin-A Palmitate and Insoluble Sulphur from China, Japan, Switzerland, and the European Union (EU). This action aims to shield local manufacturers from unfairly low-priced imports that have been undercutting domestic production and threatening industry sustainability. The Directorate General of Trade Remedies (DGTR) conducted thorough investigations and determined that these imports were being sold at prices below fair market value, causing material injury to Indian producers.
As a result, the government has levied five-year anti-dumping duties, effective immediately. Vitamin-A Palmitate, a vital ingredient in fortified foods, nutraceuticals, and pharmaceutical formulations, has seen significant imports from China, the EU, and Switzerland. The DGTR’s findings revealed that these imports were adversely affecting the performance of domestic producers, leading to reduced profits and return on capital employed. To counter this, the government has imposed duties ranging from $0.87 to $20.87 per kilogram, with the highest rate applied to Chinese exporters other than Shangyu NHU BioChem Co. Ltd., which faces a lower rate of $14.95/kg. Swiss producer DSM Nutritional Products Ltd will attract a duty of $0.87/kg, while other Swiss exporters will face $8.2/kg. A flat rate of $11.09/kg applies to imports from the EU.
Despite these protective measures, industry stakeholders express concerns about India’s continued dependence on imports for this crucial compound. While the anti-dumping duties offer temporary relief to domestic manufacturers, they may lead to increased input costs for drug makers in the short term, especially those relying on imports from Switzerland and China. However, experts suggest that the price impact is expected to be manageable, given that Vitamin-A is used in small dosages and constitutes a minor fraction of total formulation costs. Insoluble Sulphur, an essential additive in rubber manufacturing, particularly in tyre production, has also been subject to unfair pricing practices. The DGTR’s investigation found that imports from China and Japan were being sold at dumped prices, harming domestic producers. Consequently, the government has imposed anti-dumping duties to protect the local rubber industry and maintain fair competition in the market.
This move aligns with India’s broader strategy to safeguard its domestic industries from unfair trade practices and ensure a level playing field for local manufacturers. By implementing these anti-dumping duties, the government aims to foster a competitive and sustainable industrial ecosystem, promoting long-term economic growth and self-reliance.As global supply chains continue to evolve, India is increasingly proactive in utilizing World Trade Organization-compliant instruments to protect its domestic industries. The imposition of anti-dumping duties on Vitamin-A Palmitate and Insoluble Sulphur serves as a testament to the country’s commitment to fair trade practices and the protection of its industrial base.
While these measures may lead to short-term challenges, they are expected to bolster the resilience of India’s domestic industries, ensuring their competitiveness in the global market and contributing to the nation’s economic self-sufficiency.
Also Read: IndiGrid Acquires Rs 2100 Crore Transmission and Solar Assets from ReNew Power
