According to the report, India has found sufficient evidence of dumping by Malaysia, China, Indonesia and Thailand.
Dumping is the practice of exporting a product at a price lower than the price it is sold at home. As dumping usually involves substantial volumes, it can affect the financial viability of the manufacturers or producers of the product in the importing country.
The Financial Express said India’s Directorate General of Anti-dumping and Allied Duties (DGAD), under the commerce ministry, has initiated an investigation into the matter.
This comes in the wake of several Indian firms filing for the application of an anti-dumping duty on imports of non-dyed polyester staple fibre ranging from 0.6 to 6 deniers.
The Indian firms claim fibres were entering the Indian market at dumping prices that were hurting the domestic industry.
The DGAD’s probe will determine the “existence, degree and effect of alleged dumping”, after which it may recommend the quantum of anti-dumping duty for the Indian finance ministry to impose.
The report said such an anti-dumping duty may be “adequate” to prevent injury to the domestic market.
In 2015, India imposed anti-dumping duties on industrial-grade stainless steel imported from Malaysia, China and South Korea to protect its domestic stainless steel industry after India’s trade ministry said the domestic industry was suffering from dumped imports.