Government may slap anti-dumping duty on TDI imports

Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) had filed a petition to the Directorate General of Anti- dumping and Allied Duties (DGAD) for starting investigations on anti- dumping on imports of ‘Toluene Di-Isocyanate’ (TDI).

In its initial conclusions, the DGAD has found that the chemical was imported from China, Japan and Korea, at prices below their normal value, because of which domestic business has suffered substantial loss.

Further, DGAD has recommended imposition of provisional anti-dumping duty to give some cushion to domestic players. Suggested duty was ranged between $0.14 per kg and $0.4 per kg. However, final decision on anti-dumping duty would be taken by the Finance Ministry.

Moreover, chemical imports from China, Japan and Korea have witnessed rise to 32,115 tonnes (2015-16) from 30,097 tonnes (2012-13).

TDI is used for production of a certain variety of foam, furniture cushion, protective pads for sports and medical use, automobiles seats, packing of electronic items and others.

Anti-dumping is not a measure to restrain imports or cause an unjustified increase in cost of products, but it is taken to ensure fair trade and provide a level-playing field to the domestic industry.

If India imposes a anti-dumping duty on TDI imports from China, Japan and Korea, this move would act as a catalyst for domestic player GNFC which is the leading and only manufacturer of TDI in India.

In Q3FY17, chemical business of GNFC contributed 54.65 per cent to its total revenue of Rs 1220.91 crore.