India probes China PTY dumping after QCO rollback

In this context, the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce and Industry has initiated an anti-dumping investigation into imports of polyester textured yarn (PTY) originating in or exported from China, following a duly substantiated application filed by Reliance Industries Limited and Wellknown Polyester Limited.

The product under consideration covers textured yarn falling under HS Code 5402 33 00, excluding products based on nylon, polypropylene and polyethylene. According to the petitioners, imports of PTY from China have increased significantly over the period of investigation and are being sold at prices below the normal value, resulting in price undercutting and price suppression for Indian producers.

The applicants also reported financial losses, declining profitability and negative return on capital employed—factors that DGTR considered sufficient to establish prima facie evidence of material injury.

DGTR has set the period of investigation from April 1, 2024 to June 30, 2025, with the injury analysis covering fiscal 2021–22. The authority will assess whether the alleged dumping has caused injury through increased import volumes, adverse price effects and an overall negative impact on the performance of the domestic industry.

All interested parties have been invited to submit relevant information within the prescribed timeline. If any party refuses to cooperate, DGTR may rely on the best available facts and proceed accordingly, as stipulated under the non-cooperation provisions.

This investigation marks one of the first significant trade actions following QCO withdrawal, signalling the government’s intention to protect domestic textile value chains from potential injury caused by aggressively priced imports.

ALCHEMPro News Desk (KUL)