The Commerce Ministry has recommended a restrictive duty of up to $1.15 per kg on import of a chemical from China used in manufacturing pesticides to guard the domestic industry.
The ministry said the domestic industry has suffered material injury and thus imposition of anti-dumping duty on diethyl thio phosphoryl chloride originating or exported from China is required to offset dumping and injury.
"Therefore, the authority (DGAD) considers it necessary and recommends imposition of definitive anti-dumping duties on imports of the subject goods (the chemical) from the subject country (China)," the Directorate General of Anti-Dumping and Allied Duties said.
The recommendation was made last week. While the Commerce Ministry recommends the duty, the Finance Ministry imposes it.
The principle of anti-dumping duty is to prevent dumping and to ensure fair trading practice and to create a level playing field for the domestic producers vis-a-vis foreign producers and exporters resorting to dumping.
During the investigations, concerns were raised by users that the price of commonly used pesticide products, such as, chlorpyriphos, quinalphos and anilophos, for most common crops would go up by at least 15 to 20 per cent if the duty is imposed and thus impact the interest of the farmers.
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"It is recognised that the imposition of anti-dumping duties might affect the price levels... However, fair competition in the Indian market will not be reduced by the anti-dumping measures," the DGAD said.
Diethyl thio phosphoryl chloride, a highly toxic chemical, is an intermediate used in the production of pesticides.