In a decisive move to support domestic manufacturers, the Indian government has imposed five-year anti-dumping duties on imports of Vitamin-A Palmitate and Insoluble Sulphur from China, Japan, Switzerland, and the European Union (EU). The decision, aimed at curbing unfair trade practices, follows investigations by the Directorate General of Trade Remedies (DGTR) and comes into effect immediately.
Vitamin-A Palmitate Imports Face Duties up to $20.87/kg
Vitamin-A Palmitate, a compound widely used in pharmaceuticals, nutraceuticals, fortified foods, and cosmetics, has been a key area of concern due to heavy import dependence. India imported $48.6 million worth of the product in FY25, with most shipments originating from China and Europe.
DGTR’s probe revealed material injury to Indian manufacturers as a result of large-scale dumping at prices below cost or fair market value.
Based on these findings, the finance ministry has imposed the following anti-dumping duties:
China:
Shangyu NHU BioChem Co. Ltd: $14.95/kg
Other Chinese exporters: $20.87/kg
Switzerland:
DSM Nutritional Products Ltd: $0.87/kg
Other Swiss exporters: $8.2/kg
European Union:
Flat rate: $11.09/kg
However, Vitamin-A Palmitate in 1.6 MIU/Gm strength, used for animal feed, has been excluded from the duty.
Industry Reactions: Relief and Concerns
While the duties are seen as a protective shield for local producers, some concerns remain regarding India’s continued reliance on imports for this essential input.
“The duty gives much-needed breathing space to Indian Vitamin-A manufacturers,” said Yogendra Sharma, a pharmaceutical manufacturer. “However, companies dependent on imports from China or Switzerland may see a marginal increase in input costs. Thankfully, since Vitamin-A is used in small amounts, the overall cost impact on drug formulations will be limited.”
Legal Experts Highlight India’s Assertiveness
Trade experts have welcomed the move as part of India’s increasingly proactive trade strategy. “With global supply chains in flux, India is now more assertive in using WTO-compliant tools to safeguard its industry,” noted Manish Kr Shubhay, a dispute resolution expert and Partner at The Percept Law Offices. “This case is a prime example of that shift.”
The authorities will collect the duties in Indian rupees, using exchange rates notified by the Revenue Department at the time of filing the bill of entry.
Insoluble Sulphur Imports from China and Japan Also Targeted
In a related development, the government has also imposed anti-dumping duties on Insoluble Sulphur, a compound essential for the tyre manufacturing industry due to its role in rubber vulcanization. DGTR found that exporters from China and Japan were dumping the chemical at artificially low prices, thereby hurting Indian producers’ pricing power and profitability.
The newly imposed duties are:
China: Flat rate of $307/MT
Japan:
Shikoku Chemicals: $259/MT
All other Japanese exporters: $358/MT
Conclusion: A Stronger Trade Defense Strategy
These anti-dumping measures reinforce India’s evolving trade defense posture and its commitment to protecting domestic industries from unfair foreign competition. As reported by livemint.com, while the immediate effect could be slightly higher costs for downstream users, the long-term impact may be positive as it fosters a stronger, more self-reliant manufacturing base within the country.
