India’s Ministry of Commerce and Industry has proposed the implementation of an anti-dumping duty on aluminum foil imported from China, in response to a significant surge in shipments from the neighboring nation that have captured nearly a third of the Indian market.
This recommendation was detailed in a report released by the ministry late on Friday and has been forwarded to the government for its review and approval. The ministry’s move comes as a strategic effort to safeguard the domestic aluminum foil manufacturing sector, which is facing increased pressure due to the influx of cheaper imported products.
According to the Directorate General of Trade Remedies, which prepared the report, the proposed anti-dumping duty aims to protect local producers from the adverse effects of these unfair trade practices. The report suggests imposing a duty ranging from $619 to $873 per metric ton on aluminum foil that is up to 80 microns in thickness.
However, this recommendation excludes aluminum foil that is thinner than 5.5 microns, particularly those used in non-capacitor applications. The objective is to mitigate the impact of the dumping activities on the domestic industry while still allowing for the continued use of thinner foils for their specific applications.
Aluminum foil plays a crucial role in the packaging industry, where it is extensively utilized to preserve and conserve food products. Its effectiveness in maintaining the freshness and extending the shelf life of edible goods makes it a vital component in the packaging sector.
The significant rise in imports from China, despite India’s substantial production capacity, has raised concerns among domestic manufacturers who feel threatened by the competitive pricing of the imported foil. The anti-dumping duty is seen as a necessary measure to counteract the negative impacts of these imports on local businesses and to ensure a level playing field in the market.
By imposing this duty, the Indian government aims to support the local aluminum foil manufacturers, maintain their market share, and encourage fair competition within the industry. The recommendation marks a significant step towards addressing the challenges faced by the domestic manufacturing sector and reflects the government’s commitment to protecting local industries from unfair trade practices.
