India Initiates Anti-Dumping Probe on Taiwanese Phthalic Anhydride Imports

India has launched an anti-dumping investigation into phthalic anhydride imports from Taiwan, following complaints from domestic manufacturers like IG Petrochemicals and Thirumalai Chemicals. The probe addresses allegations that Taiwanese imports, used in plastics and paints, are being dumped at prices below normal value, causing material injury to local producers. Imports from Taiwan surged 38% in FY25, despite an overall decline in India's imports of the chemical. The Directorate General of Trade Remedies will investigate, potentially leading to anti-dumping duties.

India's Ministry of Commerce and Industry has initiated an anti-dumping investigation into imports of phthalic anhydride, a vital industrial chemical used in plastics and paints, originating from Taiwan. This action stems from grievances lodged by domestic producers, including IG Petrochemicals Ltd, Thirumalai Chemicals Ltd, and TCL Intermediates Pvt Ltd, who assert that Taiwanese imports are being sold in the Indian market at prices significantly below their normal value, thereby inflicting material injury on local industries through price suppression and reduced capacity utilization. The Directorate General of Trade Remedies (DGTR) is overseeing the probe, which will analyze dumping trends for the period between October 1, 2024, and September 30, 2025, while also examining injury trends over the preceding three financial years. Significantly, official data reveals that while India's overall imports of phthalic anhydride declined by 25.4% in FY25, imports from Taiwan paradoxically soared by 38% to $38.82 million during the same period. This stark contrast bolsters the allegations of unfair trade practices. The preliminary examination by the DGTR has indicated a dumping margin exceeding the de-minimis level, providing a sufficient basis to proceed with a formal investigation. Should the allegations be substantiated, the authority is empowered to recommend the imposition of anti-dumping duties. Such measures are crucial for protecting domestic manufacturers from unfair competition, ensuring a level playing field, and restoring competitive neutrality in the market, as emphasized by experts like Jaijit Bhattacharya from C-DEP.