Recently, India has started an anti-dumping investigation on China for the imports of vitamin C that is used by pharmaceutical firms for medicine production.
This move by the Directorate General of Trade Remedies (DGTR) came after an anti-dumping duty was imposed on drug Ciprofloxacin Hydrochloride imports from China. The investigation began after Bajaj Healthcare alleged that the domestic sector is getting impacted due to the ‘dumped imports’ of vitamin C from China.
Rationale Behind the Probe
The DGTR said that the imports from China are entering at a price below the selling price. Currently, China is exporting vitamin C at a price lower than the price of that product in its domestic market. Domestic manufacturers in India claim that there is ‘no known difference’ between Chinese-made products and those made in India.
Probe’s Development So Far?
The DGTR said that the definitive anti-dumping duty is recommended to be imposed for five years. The central government could impose that on all imports of goods originating in or exported from China. Currently, DGTR has recommended $3.2/kg and $3.55/kg duty on imports. The Finance Ministry is yet to release the final decision to impose the duty.
Closing Comments
Vitamin C is used in bulk by pharmaceutical firms for the production of various medicines. It is an essential nutrient that is used in the functioning of several enzymes. Post COVID-19, like other nations, India has begun to reduce its dependence on China. In the future, more goods and raw materials could see a similar outcome.
