NEW DELHI: The government is expected to impose anti-dumping duty of $1.85 (about Rs 122) per kg on imports of mulberry raw silk from China, a move aimed at protecting the domestic industry from cheap in-bound shipments.
The Directorate General of Anti-dumping and Allied Duties (DGAD) during its investigation has concluded that “mulberry raw silk of grade 3A and below” have been exported to India from China below its normal value and due to this, the domestic industry has suffered “material injury”.
“The authority (DGAD) recommends imposition of definitive anti-dumping duty… so as to remove the injury to the domestic industry,” the ministry said in a notification.
DGAD, the nodal agency under the Commerce Ministry for such investigations, has recommended an anti-dumping duty of $1.85 per kg on imports of the silk from the neighbouring country.
Imports from China have increased considerably from 12.63 lakh kg in 2010-11 to 22.17 lakh kg during the period of the investigation (April 2013 to June 2014). While DGAD recommends the duty, the Finance Ministry imposes it.
Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.
Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.