India has launched an anti-dumping investigation into Taiwanese imports of phthalic anhydride, a key industrial chemical used to make plastics and paints, according to a notice issued by the Ministry of Commerce and Industry. The probe comes in the wake of complaints from domestic manufacturers about price cuts.
The Directorate General of Trade Redressal (DGTR) investigation, initiated following a complaint by IG Petrochemicals Ltd, Thirumalai Chemicals Ltd and TCL Intermediates Pvt Ltd, comes in the wake of a surge in imports from Taiwan despite an overall decline in imports of the Indian product – a key chemical ingredient in plastics used to make plasticizers, polyester resins, paints and coatings. This raised concerns about price suppression and weakening capacity utilization of domestic manufacturers.
The investigation will run from October 1, 2024 to September 30, 2025, while the injury analysis will examine trends over the previous three financial years as well as the investigation period, the notice said.
The companies claimed that Taiwanese imports chemicals were being sold at dumped prices in India at prices below their normal value, causing substantial injury to domestic manufacturers, according to a notice issued on March 12.
Inquiries sent to the complaining companies on Friday remained unanswered as of press time.
Phthalic anhydride is classified under Chapter 29 of the Customs Tariff Act and is usually imported under tariff item 29173500.
India imports phthalic anhydride from several countries including China, Japan, Korea, Russia, Taiwan and Thailand.
India as a whole, according to data from the Ministry of Commerce imports of the chemical in FY25 fell 25.4% to $65.51 million from $87.84 million the previous year. Imports from China, for example, fell 53% to $16.76 million in FY25. In contrast, imports from Taiwan rose 38% to $38.82 million in FY25 from $28.12 million in FY24.
According to the notification, the DGTR said the inquiry will examine whether the Taiwanese product is being dumped in India and whether such imports have caused injury to the domestic industry. If the allegations are proven, the authority may recommend the imposition of anti-dumping duties to offset unfair pricing.
The The DGTR noted that a preliminary examination of the evidence submitted by the applicants shows that the alleged dumping margin is above the de minimis level, which provides a sufficient basis to initiate a formal investigation.
Anti-dumping investigations are intended to protect the domestic industry from unfair pricing while maintaining fair competition in the market.
“India.” the anti-dumping framework is designed to maintain a level playing field for domestic producers. If import prices are found to be below fair market value and causing injury to the local industry, remedial duties can help restore competitive neutrality in the market,” said Jaijit Bhattacharya, founder and president of the Center for Research on Digital Economy Policy (C-DEP), a think tank.
