The commerce ministry has initiated an anti-dumping investigation into imports of para nitrotoluene (PNT) from the European Union.
PNT is a chemical used in intermediates that are utilised in producing optical brighteners, colouring agents, pharmaceuticals and agrochemicals.
The Directorate General of Trade Remedies (DGTR), the investigative arm of the ministry, is leading the probe into whether PNT is being dumped in the Indian market at prices below fair value.
The investigation was triggered by a complaint by Deepak Nitrite Limited, one of India’s key producers of PNT. The other domestic producer is Aarti Industries Limited.
According to the application, dumped imports of PNT from the European Union have caused significant harm to the Indian industry.
The investigation period for the probe spans from April 1, 2023, to March 31, 2024. The injury analysis period covers 2020-21, 2021-22 and 2022-23, and the investigation period.
Deepak Nitrite provided preliminary evidence showing that the volume of PNT imports had increased significantly during the investigation period.
The company argued that the landed price of these imports is lower than the cost of production and sales within India. This has forced Deepak Nitrite to reduce its prices to remain competitive, mitigating the extent of price undercutting.
The DGTR noted that there is sufficient prima facie evidence of material injury to the domestic industry.