India lifts anti-dumping levy on Saudi import of polypropylene

NEW DELHI: India has lifted anti-dumping duty on imports of a chemical used for manufacture of woven sacks for cement and foodrains, from Saudi Arabia days before the visit of Saudi Arabian Commerce and Industry Minister.

"The Central government amends notification of November 19, 2010, insofar as it relates to the imposition of anti-dumping duty and as such revokes the duty imposed on imports of the subject goods ( polypropylene) originating in or exported from Saudi Arabia," the finance ministry said in a notification dated December 30.

India had imposed a 6.5 per cent anti-dumping duty on imports of polypropylene from Saudi Arabia, Oman and Singapore.

The duty has been removed on imports of the chemical only from Saudi Arabia.

The duty was levied on the ground that the import shipments were valued at less than normal prices and were hurting domestic manufacturers.

The request for imposition of the restrictive duty was filed by Mukesh Ambani-controlled Reliance Industries, which produces over 50 per cent of the country's polypropylene.

The announcement for removal of the levy came about a week before visit of Saudi Arabia Commerce Minister Tawfeeq Bin Fouzan Al Rabea here. He is leading a 35-member business delegation.

Meanwhile, Saudi Export Development Council Abdulrahman Al-Zamil chief has described the Indian decision as "a welcome move" stating that New Delhi has taken this decision in light of the strategic bilateral trade ties.

Al-Rabea will attend the Indo-Saudi Joint Economic Commission meeting as well as Indo-Saudi Business Council meeting in India this week.