The Directorate General of Trade Remedies (DGTR), a branch of the commerce ministry, has recommended imposing an anti-dumping duty on Chinese aluminium foil to protect the domestic industry from cheap imports. The aluminium foil in question is used as a packaging material for preserving edible and food products.  

This recommendation follows a complaint lodged by domestic companies, including Hindalco Industries, Shyam Sel & Power Ltd, Shree Venkateshwara Electrocast, Ravi Raj Foils, GLS Foils Product, and LSKB Aluminium Foils.

The investigation focused on the import of aluminium foil up to 80 microns in thickness, excluding foil below 5.5 microns intended for non-capacitor applications.  In its preliminary findings, the DGTR concluded that these imports from China have negatively impacted the growth of the domestic industry, both in terms of volume and pricing.

As a result, the DGTR has provisionally recommended imposing anti-dumping duties ranging from $619 to $873 per tonne.  The final decision to impose these duties lies with the finance ministry.

Anti-dumping investigations are typically carried out by countries to assess whether domestic industries have been harmed by an influx of low-cost imports. These duties are imposed under the World Trade Organization's (WTO) multilateral regime to promote fair trading practices and provide a level playing field for domestic producers.

 India has already imposed anti-dumping duties on various products from multiple countries, including China. In 2023-24, India faced a significant trade deficit of $85 billion with China, prompting the government to take measures such as introducing production-linked incentive schemes to reduce reliance on imports.

 (Upstox & PTI)