DGTR started investigation after Paushak’s complaint
According to Reuters, the Directorate General of Trade Remedies (DGTR), which operates under the Union Commerce Ministry, initiated the investigation following an application filed by Paushak.In its complaint, Paushak claimed that imports from China have caused “material injury” to domestic producers. The company said it is the only domestic producer of ethyl chloroformate in India and is responsible for the country’s entire production of the chemical.According to Reuters, the DGTR said it will investigate whether the product is being dumped in the Indian market and whether anti-dumping duties are needed to compensate the alleged injury to the domestic industry.
Chemical widely used in pharma, agrochemical manufacturing
Ethyl chloroformate is an organic chemical intermediate widely used in the manufacture of pharmaceuticals and agrochemicals.Because of its role in these sectors, any eventual anti-dumping duties could have widespread downstream effects. If dumping is confirmed and duties are imposed, it could increase input costs for drug manufacturers and agrochemical companies even as it provides protection to local producers.According to a Reuters report, Paushak has alleged that rising imports from China have put pressure on prices in the domestic market and weakened its profitability.
Initial assessments reveal significant price cuts
DGTR said its preliminary assessment revealed that the dumping margin appears to be above the de minimis threshold.This suggests that there may have been significant price undercutting by Chinese exporters, which is one of the key factors examined by the authorities in anti-dumping cases.The investigation will cover the period from October 2024 to September 2025. During this period, the DGTR will assess submissions and evidence from exporters, importers and other interested parties before deciding whether to recommend duties to the Central Government.
Part of a broader trade investigation into cheap imports.
This step has been taken especially amid India’s broader efforts to stop low-cost imports from China.In December, India imposed a three-year import duty of 11% to 13% on some steel imports to curb the influx of cheap Chinese products.
Separate Hexamine investigation also opened
In a parallel development, the DGTR has also initiated a separate anti-dumping investigation into the import of hexamine, another intermediate used by the chemical and pharmaceutical industries.That investigation covers imports from or exports to China, Russia and the United Arab Emirates.Overall, both investigations indicate an intensified regulatory focus on chemical imports, which domestic producers say is cutting into Indian manufacturing, which could have potential implications for both industrial policy and input costs in key sectors such as pharmaceuticals and agrochemicals.
