India has launched an anti-dumping investigation into the import of sodium cyanide from China, the European Union, Japan, and Korea, following a complaint by domestic companies Hindustan Chemical Company and United Phosphorous Ltd.

Sodium cyanide is used for the extraction of gold and silver, insecticides, dyes, pigments, and bulk drugs.

The Directorate General of Trade Remedies (DGTR) will examine whether domestic industries have been harmed by an increase in cheap imports and, if so, will recommend the imposition of anti-dumping duty on the imports.

DGTR said in notification that the applicants have alleged that material injury is being caused to the domestic industry due to the alleged dumped imports.

It said the normal value and the export price have been compared at the ex-factory level, which prima facie establishes that the dumping margin is above the specified level and is significant in respect of the product under consideration from these countries.

“Thus, there is sufficient prima facie evidence that the product under consideration from the subject countries is being dumped in the domestic market of India,” it said.

The directorate said on the basis of the application “and having reached satisfaction based on the prima facie evidence submitted by the applicants…the authority, hereby, initiates an anti-dumping investigation”.

For the purpose of the probe, the directorate will consider the import of the product between April 2019- March 2022.

If it is established that the dumping has caused material injury to domestic players, DGTR would recommend the imposition of anti-dumping duty on these imports.

The finance ministry takes the final decision to impose duties. Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports.

As a countermeasure, the finance ministry imposes these duties under the multilateral regime of Geneva-based World Trade Organization (WTO). The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.

Image source: Indian Express