DGTR Recommends Import Duties on Aluminium Foil from China
The Directorate General of Trade Remedies (DGTR) has suggested imposing import duties on aluminium foil being brought in from China. The recommendation comes after an investigation found that the surging volume of inexpensive Chinese imports has been hurting domestic producers.
Aluminium foil is a versatile packaging material used widely for preserving and protecting food items. However, aluminium foil imports from China have captured a significant share of around 30% in the Indian market, despite India having enough manufacturing capacity locally.
A few leading Indian aluminium manufacturers including Hindalco had approached the DGTR arguing that the cheap Chinese imports were adversely impacting their business. After examining the case, the DGTR observed that the Chinese imports were priced below local manufacturers' production costs. This predatory pricing was forcing Indian producers to sell below cost just to compete, causing economic injury.
The DGTR has proposed anti-dumping duties ranging from $619 to $873 per tonne on aluminium foil imports from China. A final decision on imposing these import duties will now be taken by the Ministry of Finance. The proposed move aims to establish a level-playing field for domestic manufacturers and address the unfair pricing of Chinese imports.
While some voices cautioned that import duties could increase costs for downstream users, most experts agree that reasonable trade defense is necessary to protect Indian industry from such unfair trade practices. The additional revenues from import duties can also boost the ‘Make in India' initiative and create more local jobs. A balanced approach is needed to promote growth for all stakeholders in a sustainable manner.
