India RegionCrop Protection

Initiation of Anti-Dumping Investigation on Glufosinate Imports from China

10 July 2024, New Delhi: In a significant development aimed at protecting the interests of the domestic agrochemical industry, the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce and Industry has initiated an anti-dumping investigation concerning imports of ‘Glufosinate and its salt’ originating from China PR. This investigation, marked under Case No. AD (OI)-17/2024, follows an application filed by UPL Limited and related entities citing alleged dumping practices that have inflicted material injury upon the Indian domestic industry.

Background and Allegations

Glufosinate, recognized chemically as glufosinate ammonium or D, L-phosphinothricin, is a crucial herbicide widely used in agriculture. The applicants, comprising UPL Limited, Arysta LifeScience India Limited, Swal Corporation Limited, United Phosphorus (India) LLP, and UPL Sustainable Agri Solution Limited, have contended that imports of glufosinate from China PR are being sold in India at prices lower than their fair market value, causing significant harm to the domestic industry. They further argue that this situation not only undermines their competitive position but also poses a threat of further injury.

Product Under Consideration

The product under consideration encompasses both technical and formulation variants of glufosinate. While glufosinate technical is essential for formulating the herbicide, the imported product primarily consists of glufosinate technical, which is then processed locally into formulation due to commercial considerations. This distinction underscores the integrated nature of the industry where technical and formulated glufosinate are interdependent.

Allegations of Dumping and Injury

The applicants have substantiated their claims with compelling evidence suggesting that imports from China PR are being dumped in the Indian market. The dumping margin, calculated by comparing the normal value (estimated cost of production plus reasonable profit) with the export price, indicates significant undercutting of prices. This has allegedly led to a decline in domestic sales, market share, production capacities, and profitability of the applicants. The DGTR’s preliminary findings indicate a prima facie case of material injury to the domestic industry, necessitating further investigation.

Initiation of Investigation

Based on the application’s merits and the prima facie evidence provided, the DGTR has formally initiated an anti-dumping investigation. This investigation aims to assess the existence, degree, and effect of dumping on the domestic industry from 1st January 2023 to 31st December 2023. The inquiry period for injury examination spans several years up to the present, encompassing key phases of market activity and import dynamics.

Procedural Aspects

Interested parties, including producers, exporters from China PR, importers, and other stakeholders, have been notified to submit relevant information within specified timelines. This includes details on production costs, pricing mechanisms, and any mitigating factors that could influence the investigation’s outcome. All submissions must adhere to stringent confidentiality protocols, ensuring fair and transparent handling of sensitive commercial information.

Implications and Future Actions

The initiation of this investigation marks a critical juncture in trade relations between India and China PR in the agrochemical sector. Depending on the findings, the DGTR may recommend the imposition of anti-dumping duties to address the alleged injury to the domestic industry. Such measures are designed to restore fair market conditions and safeguard the interests of Indian producers, ensuring a level playing field in the herbicide market.

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