Government starts anti-dumping probe into soda ash imports

NEW DELHI: India has initiated a probe into alleged dumping of soda ash by countries like China, Iran and Pakistan to protect domestic players.

The Commerce Ministry's designated authority, the Directorate General of Anti-Dumping and Allied Duties ( DGAD), has started an investigation into alleged dumping of the chemical, used in detergent and soap making, on the basis of an application filed by the Alkali Manufacturers' Association of India.

"... The authority (DGAD) hereby initiates an investigation into the alleged dumping and consequential injury to the domestic industry... to determine the effect of dumping and to recommend the amount of anti-dumping duty... to remove the injury," the Commerce Ministry said in a notification.

The period of investigation for the purpose is from April, 2009, to March, 2010.

It said that the DGAD has sufficient prima facie evidence of dumping of soda ash by China, the EU, Kenya, Pakistan, Iran, the US and Ukraine to initiate the probe.

As many as 15 anti-dumping duties have been imposed in the first 11 months of the current fiscal, with the maximum on Chinese goods. India has slapped the restrictive duty on several items such as yarn, fabrics, certain stainless steel products, auto parts and chemicals.

Countries initiate an anti-dumping probe to see whether their domestic industries have been hurt because of a surge in cheap imports. As a counter-measure, they impose duties under the multilateral regime of the WTO.

The duty also ensures fair trading practices and creates a level-playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping.