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India starts anti dumping probe on imports of vitamin C from China

Investigation starts on the basis of complaint made by Bajaj Healthcare Limited

by Neha Mahanta
September 23, 2020
in Drug, Health, News
Reading Time: 2 mins read
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India starts anti dumping probe on imports of vitamin C from China
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The THD Health Desk, NEW DELHI: Post complaint by Bajaj Healthcare Limited to the Directorate General of Trade Remedies (DGTR), India has started an anti-dumping probe on Vitamin C being imported from China. According to the complaint, dumping is leading to a decline in market share, profits, return on capital employed, and cash profits and causing material injury to the domestic injury.

Based on the evidence submitted by the applicants, “The authority, hereby, initiates an investigation,” it said.

DGTR said on Friday,

“There is sufficient prima facie evidence of injury being caused to the domestic industry by dumped imports of subject goods from the subject country.” 

The DGTR also recommends the duty to the finance ministry to take its call on the levy.

The period of investigation is April 2019- March 2020. It would also look into the data of April 2016-19 period.

Vitamin-C has the following uses besides its own:

  • It is used by pharmaceutical companies for the production of various medicines.
  • It is also used in non-pharmaceutical companies.
  • It is an essential nutrient involved in the repair of tissue and the enzymatic production of certain neurotransmitters found in various foods.
  • It also functions as an antioxidant.
  • It’s functioning for several enzymes is indispensable for the immune system function.

Dumping is said to happen in International trade parlance, when a country or a firm exports a product at a price lower than that of the product in the domestic market. It impacts the Country’s profits of the manufacturing firms.

According to Global trade norms, the importing country is allowed to impose tariffs on such products but only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.

Three companies producing Vitamin C besides Bajaj Healthcare Limited in India are:

  • Amoli Organics Pvt Ltd,
  • Reckon Diagnostics Pvt Ltd
  • SR Biochem

DGTR noted,

“The support letters have been filed by other three producers. Hence, it is noted that the petition has been supported by the entire Indian Industry, and the Applicant along with supporters account for 100% of the Indian production.” 

Moreover, they added that Bajaj Healthcare Limited has claimed to treat China a non-market economy. This bears significance because China has been asking to treat itself as a “market economy” and till recently involved in a dispute with the World Trade Organization claiming the status.

Neha Mahanta

Neha Mahanta

A masters student in the Department of English at DU, Neha has always been fascinated by the power of literature and its impact on people's lives. Her motive behind writing is to usher in a change at a level that she can fathom, thus giving back to the society what she has received.

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