India Enforces Anti-Dumping Duties on Key Chemical Imports
India has imposed anti-dumping duties on two critical chemicals—Vitamin-A Palmitate and Insoluble Sulphur—imported from China, Japan, Switzerland, and the European Union. The move is intended to protect Indian manufacturers from the adverse effects of cheap imports that have been causing market distortions and financial damage to domestic industries.
The decision, announced by the Ministry of Finance, follows a detailed investigation by the Directorate General of Trade Remedies (DGTR). It concluded that both Vitamin-A Palmitate and Insoluble Sulphur were being dumped in the Indian market at unfairly low prices, creating an uneven playing field for local producers.
Anti-Dumping Duties
For Vitamin-A Palmitate, which is used extensively in pharmaceuticals, food, and cosmetic applications, India will levy duties ranging from $0.87 to $20.87 per kilogram. The highest duty of $20.87/kg applies to certain Chinese exporters, while Shangyu NHU BioChem Co. Ltd. faces a lower rate of $14.95/kg. Swiss manufacturer DSM Nutritional Products Ltd. has been assigned the lowest rate at $0.87/kg, with other Swiss suppliers taxed at $8.2/kg. Imports from the European Union are subject to a uniform duty of $11.09/kg. However, the variant of Vitamin-A Palmitate used specifically for animal feed, at 1.6 MIU/Gm strength, has been exempted.
Insoluble Sulphur, a critical compound used in the rubber industry, especially in tyre manufacturing, will face duties ranging from $259 to $358 per metric tonne. China will be subject to a flat rate of $307/MT. Among Japanese exporters, Shikoku Chemicals faces a lower rate of $259/MT, while all others from Japan will pay the top slab of $358/MT.
Impact on Indian Industry
Vitamin-A Palmitate and Insoluble Sulphur play a vital role in India’s manufacturing sectors, from pharmaceuticals to automotive components. The dumping of these substances had caused “material injury” to Indian producers, as revealed in DGTR’s probe. The finance ministry’s decision seeks to address these injuries and establish fair trade practices.
India imported approximately $48.6 million worth of Vitamin-A Palmitate in FY 2024–25, with a large share coming from China and Europe. These duties are expected to offer immediate relief to domestic manufacturers, reduce dependency on foreign supplies, and boost local production capabilities.
The duties will be in force for five years unless modified or revoked earlier and will be collected in Indian rupees, with exchange rates notified by the Revenue Department on the date of import clearance.
This step reflects India’s ongoing strategy to support self-reliance in critical sectors and protect against unfair international trade practices.
