Kamal Ghorui
India has launched an anti-dumping investigation into imports of ethyl chloroformate from China after domestic producer Paushak alleged that the chemical was being sold in the Indian market at unfairly low prices, hurting local industry.
DGTR begins probe after complaint by Paushak
As per Reuters, the Directorate General of Trade Remedies (DGTR), which functions under the Union commerce ministry, initiated the investigation following an application filed by Paushak.In its complaint, Paushak claimed that imports from China had caused “material injury” to domestic producers. The company has said it is India’s sole domestic producer of ethyl chloroformate and accounts for the country’s entire output of the chemical.The DGTR said it would examine whether the product was being dumped in the Indian market and whether anti-dumping duties were needed to offset the alleged injury to the domestic industry, according to Reuters.
Chemical widely used in pharma, agrochemical manufacturing
Ethyl chloroformate is an organic chemical intermediate that is widely used in the manufacture of pharmaceuticals and agrochemicals.Because of its role in these sectors, any eventual anti-dumping duty could have a broader downstream impact. If dumping is confirmed and duties are imposed, it could raise input costs for drugmakers and agrochemical companies, even as it offers protection to local producers.Paushak has alleged that rising imports from China led to price suppression in the domestic market and weakened its profitability, Reuters reported.
Preliminary assessment suggests significant price undercutting
The DGTR said its preliminary assessment showed that the dumping margin appeared to be above the de minimis threshold.This suggests there may have been significant price undercutting by Chinese exporters, which is one of the key factors authorities examine in anti-dumping cases.The investigation will cover the period from October 2024 to September 2025. During this time, 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 wider trade scrutiny on cheap imports
The move comes amid India’s broader efforts to check low-cost imports, especially from China.In December, India had imposed a three-year import tariff ranging from 11% to 13% on some steel imports in a bid to curb the influx of cheap Chinese products.
Separate hexamine probe also opened
In a parallel development, the DGTR has also initiated a separate anti-dumping investigation into imports of hexamine, another intermediate used by the chemical and pharmaceutical industries.That probe covers imports originating in or exported from China, Russia and the United Arab Emirates.Taken together, the two investigations signal a sharper regulatory focus on chemical imports that domestic producers say are undercutting Indian manufacturing, with possible implications for both industrial policy and input costs in key sectors such as pharmaceuticals and agrochemicals.
