This action follows a complaint by the Chemicals and Petrochemicals Association of India (CPMA), alleging material injury to domestic producers due to dumped imports.
The Indian government, through its investigative arm, the Directorate General of Trade Remedies (DGTR), has officially initiated an anti-dumping investigation into imports of Linear Low-Density Polyethylene (LLDPE) originating from or exported by Kuwait, Malaysia, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. This crucial step underscores India's commitment to protecting its domestic industries from unfair trade practices.
The investigation was prompted by an application filed by the Chemicals and Petrochemicals Association of India (CPMA), representing key domestic producers such as Haldia Petrochemicals Limited (HPL) and HPCL-Mittal Energy Limited (HMEL), and supported by Reliance Industries Limited. The CPMA's complaint alleges that LLDPE from these six countries is being "dumped" into the Indian market at prices significantly below their normal value, thereby causing "material injury" to the domestic industry.
According to the DGTR's notification dated June 30, there is "prima facie evidence" supporting the claim that LLDPE is indeed being dumped into the Indian market by exporters from the subject countries. This initial finding provides sufficient justification for the DGTR to proceed with a comprehensive investigation.
LLDPE, a vital copolymer of ethylene, is a critical raw material extensively used in various plastic processing industries. Its applications range from the manufacturing of packaging films and industrial profiles to wires and cables, making it an indispensable component in India's broader manufacturing ecosystem. The applicant has asserted that the imported LLDPE is a 'like article' to the domestically produced material, sharing comparable physical and chemical properties, uses, and marketability, thus warranting its inclusion in the scope of this investigation.
The CPMA's application highlighted several points of concern. It contended that LLDPE is being exported to India at prices below its "constructed normal value," a figure derived from domestic cost estimates adjusted for administrative expenses and a reasonable profit margin. Furthermore, the application pointed out that these subject imports are actively suppressing domestic prices, which, despite an increase in market share—attributed to the commencement of HMEL’s production in August 2023—has led to a concerning decline in profitability for Indian manufacturers.
The notification from the DGTR explicitly states that the authority has initiated this anti-dumping investigation to "determine the existence, degree and effect of the dumping with respect to the product under consideration."
If the investigation confirms the allegations of dumping and ascertains that it has caused significant harm to the domestic industry, the Directorate General of Trade Remedies will recommend the imposition of anti-dumping duties on LLDPE imports from the six targeted countries. It is important to note that while the DGTR makes these recommendations, the final decision on levying such duties rests with the Ministry of Finance.
