The Directorate General of Trade Remedies has recommended continuation of countervailing or anti-subsidy duty on a Chinese chemical used in pesticides for five more years to guard domestic players.
The continuation and revision of the existing duty on the imports of 'Atrazine Technical' is required in this case, the DGTR said in a notification.
"The authority considers it appropriate and necessary to recommend continuation of definitive duty...for a period of five years," the notification said. The directorate has recommended a duty of up to 11.94% on the product.
The finance ministry takes the final decision to impose this duty.
In its probe, the DGTR has concluded that the current duties have allowed more Indian producers to enter the market and have helped the domestic industry to expand its capacity.
A domestic manufacturer had filed the application for the sunset review of the existing duties, which were imposed to counter the subsidies given by China to its producers of this chemical.
According to the notification, the applicant has sought an enhancement of the duty on the imports.
The subsidised exports were hurting Indian players.
The revenue department had imposed the duty in September 2019.
Subsidised exports impact the price of that product in the importing country, hitting the margin and profit of manufacturing firms.
According to global trade norms, a country is allowed to impose countervailing or anti-subsidy duties on such imports.
(With inputs from PTI)
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
