India probes Chinese ethyl chloroformate for dumping

India has launched an anti-dumping investigation into imports of ethyl chloroformate from China following allegations that the chemical is being sold at unfairly low prices. The substance is a critical organic chemical intermediate used extensively in the manufacturing of pharmaceuticals and agrochemicals.

The Directorate General of Trade Remedies (DGTR), operating under the federal trade ministry, initiated the probe after receiving an application from PAUSHAK LTD. The company, which identifies as the sole domestic producer of the chemical in India, alleged that a surge in Chinese imports has caused material injury to local industry by suppressing prices and weakening profitability.

The DGTR said it would examine whether the product was being dumped on the Indian market and whether anti-dumping duties were warranted to offset the alleged injury to domestic producers.

The investigation will cover the period from October 2024 to September 2025. Preliminary assessments by the DGTR indicate that the dumping margin appears to be above the de minimis level, suggesting significant price undercutting by Chinese exporters. The agency will now evaluate evidence from exporters, importers, and other interested parties before determining whether to recommend the imposition of duties to the government.

Trade analysts noted that while the probe aims to shield local manufacturers, any resulting duties could lead to higher raw material costs for drugmakers and agrochemical firms. This action follows other recent measures to curb cheap imports, such as the three-year tariff imposed on certain Chinese steel products last December.

In a parallel development, the DGTR has also opened an anti-dumping investigation into imports of hexamine, another intermediate used by the chemical and pharmaceutical sectors. This separate probe targets imports originating from or exported by China, Russia, and the United Arab Emirates.