India probes cheap detergent chemical import from China

India has initiated an anti-dumping probe into the import of a Chinese chemical used in detergents following complaints from some domestic companies.

Gujarat Credo Mineral Industries and Chemicals India have filed an application before the Directorate General of Anti-dumping and Allied Duties (DGAD) for initiation of an investigation into the import of 'Zeolite 4A (Detergent Grade)' from China.

In a notification, the DGAD said prima facie it has found sufficient evidence of dumping of the chemical.

The anti-dumping duty, if imposed, would help guard domestic players in the sector against cheap imports of the product.

"The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry," it said.

In the probe, it would determine the existence and effect of the alleged dumping and recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the injury to the domestic industry.

The period from April 2016 to June 2017(15 months) will be taken for the probe.

Countries carry out an anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in cheap imports.

As a countermeasure, they impose duties under the multilateral regime of WTO.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters.

India has already imposed anti-dumping duty on several products to tackle cheap imports, including from China.

The country has imposed the duty on as many as 98 products, as on December 27 last year, imported from China.