The government has initiated separate anti-dumping investigations into imports of caprolactam and persulphates, two chemical inputs used across textile and chemical processing industries. The investigations could affect both domestic chemical manufacturers and downstream textile producers that depend on these materials. Caprolactam serves as a key raw material for Nylon-6, which is used to produce nylon filament yarn and tyre cord fabric. Meanwhile, persulphates function as initiators and oxidising agents in textile and chemical processing.
DGTR Probes Caprolactam Imports from Four Countries
The Directorate General of Trade Remedies (DGTR) has launched an anti-dumping investigation into caprolactam imports originating in or exported from China, Russia, Thailand and the US. The investigation follows an application by Gujarat State Fertilizers & Chemicals Limited (GSFC), which alleged that dumped imports were causing material injury to the domestic industry. The company has sought the imposition of anti-dumping duties on imports from the subject countries.
Caprolactam, classified under tariff item 2933 71 00 and also known as 6-Hexanelactam, is primarily used to manufacture Nylon-6 chips. These chips are subsequently processed into yarn and fabric. The material also finds applications in nylon tyre cord fabric and nylon filament yarn, linking the investigation directly to the man-made fibre and technical textile value chain. The investigation period runs from April 1, 2025, to March 31, 2026, while the injury assessment covers 2022-23, 2023-24, 2024-25 and the investigation period.
DGTR Finds Prima Facie Evidence of Dumping
According to DGTR, the preliminary evidence indicates that the dumping margin for caprolactam imports from all four subject countries exceeds the de minimis threshold and is significant. Furthermore, imports increased substantially both in absolute terms and compared with Indian production and consumption. At the same time, landed import prices remained below the selling prices of the domestic industry. These factors prompted the Authority to examine whether dumped imports have caused injury to India’s caprolactam industry.
Separate Investigation Targets Chinese Persulphates
In a separate notification dated September 30, 2026, DGTR initiated an anti-dumping investigation into persulphate imports from China. The investigation follows an application filed by Calibre Chemicals Private Limited and UI-VR Private Limited. The applicants alleged that dumped Chinese imports were causing material injury to domestic producers. The product under investigation includes ammonium persulphate, potassium persulphate and sodium persulphate. DGTR considers these products closely related alkali metal salts with common applications as initiators and oxidising agents in the textile and chemical industries.
Chinese Persulphate Imports Under Scrutiny
The persulphates investigation covers the period from April 1, 2025, to March 31, 2026, while the injury assessment covers 2022-23, 2023-24, 2024-25 and the investigation period. DGTR found that the applicants represented a major proportion of Indian persulphate production. Yoyo Chemicals and Aminisha Organics LLP also supported the application. The Authority said prima facie evidence indicated that the dumping margin on Chinese persulphates was significant and above the de minimis threshold. Moreover, import volumes increased in both absolute and relative terms, while import prices declined sharply. DGTR also noted evidence of price undercutting and price suppression in the domestic market.
Implications for Chemical and Textile Industries
The two investigations could have implications across India’s chemical and textile value chains. Any eventual trade-remedy measures could affect the cost and availability of caprolactam and persulphates for domestic manufacturers. However, the initiation of an anti-dumping investigation does not itself mean that duties will be imposed. DGTR will examine the evidence submitted by interested parties before reaching its recommendations. As reported by fibre2fashion.com, the investigations highlight India’s continuing scrutiny of chemical imports and the potential impact of pricing practices on domestic chemical production and downstream industries.
