New Delhi to Levy Anti-Dumping Duty on Chinese Titanium Dioxide
New Delhi has committed to imposing anti-dumping duties on Chinese titanium dioxide imports to protect domestic producers from price pressure.
Key points
- Centre promises to impose anti-dumping duties on Chinese titanium dioxide imports to protect domestic industry.
- Kerala public sector units KMML and Travancore Titanium Products face severe financial pressure from low-priced imports.
- DGTR has completed its inquiry, and the government will now issue the necessary gazette notification.
The Indian government has committed to imposing anti-dumping duties on titanium dioxide imports from China, a move designed to shield domestic manufacturers from sustained price erosion. This assurance was provided by Union Finance Minister Nirmala Sitharaman and Revenue Secretary Arvind Srivastava during discussions with Kollam MP N K Premachandran, following a memorandum submission in New Delhi.
According to The Times of India, the intervention aims to address severe competitive pressure on the Indian titanium dioxide industry. Low-priced Chinese imports have significantly impacted market share and financial performance, particularly for public sector entities in Kerala, which are currently facing reduced capacity utilization and production constraints.
Domestic producers face severe financial pressure
Kerala Minerals and Metals Ltd (KMML) and Travancore Titanium Products Ltd are the primary entities affected by the import surge. Premachandran noted that the current market conditions have adversely affected their operational metrics, including production levels and market share. The financial strain on these companies directly impacts approximately 3,000 direct and indirect employees, threatening the livelihoods of numerous families in the region.
Regulatory procedure accelerates after DGTR findings
The Directorate General of Trade Remedies (DGTR) has already completed its inquiry into the unfair trade practices. The government has agreed to proceed with the necessary administrative steps, specifically issuing a gazette notification to formalize the duties. Premachandran urged the Centre to avoid further delays, as the existing timeline has already resulted in accumulating financial losses for domestic firms.
Expansion plans depend on market stability
The titanium dioxide sector holds significant potential for capital investment and capacity expansion. However, KMML has paused its plans to increase production capacity due to the uncertain and unfavorable market environment. The implementation of the anti-dumping duty is viewed as a prerequisite for restoring a level playing field, which is essential for the company to proceed with its strategic growth initiatives and safeguard long-term employment.
