DGTR investigates alleged low-priced imports of key tyre and rubber chemical amid concerns over impact on domestic manufacturers
India has initiated an anti-dumping investigation into imports of Resorcinol, a critical chemical used in the production of tyres, rubber products, adhesives, and industrial applications, following allegations that exporters from China and Japan are selling the product in the Indian market at unfairly low prices. The investigation has been launched by the Directorate General of Trade Remedies (DGTR), the country’s trade watchdog under the Ministry of Commerce and Industry.
The probe follows a petition filed by Indian chemical manufacturer Atul Ltd, which claims that dumped imports of Resorcinol from the two countries have caused material injury to the domestic industry. According to the company, low-priced imports have adversely affected local producers by putting pressure on prices, profitability, and market share. After reviewing the evidence submitted, the DGTR concluded that there was sufficient prima facie evidence to warrant a formal investigation.
Resorcinol is a specialty chemical widely used as a bonding agent in tyre manufacturing and rubber reinforcement applications. It plays an important role in improving the adhesion between rubber compounds and reinforcing materials, contributing to the durability and performance of tyres and other rubber-based products. The chemical is also used in resins, wood adhesives, and various industrial formulations.
Through the investigation, the DGTR will examine whether Resorcinol imported from China and Japan is being dumped into the Indian market and determine the extent of such dumping, if any. The authority will also assess whether these imports have caused injury to domestic manufacturers and whether there is a direct link between the alleged dumping and the industry’s financial performance.
If the investigation confirms the allegations, the DGTR may recommend the imposition of anti-dumping duties on imports from the subject countries. The final decision on the implementation of any duties will rest with the Ministry of Finance. Anti-dumping measures are permitted under World Trade Organization (WTO) rules and are commonly used by countries to protect domestic industries from unfair trade practices while maintaining fair competition in the market.
The move reflects India’s continued efforts to strengthen domestic manufacturing and safeguard local industries from import distortions. It also highlights the increasing scrutiny being placed on chemical and raw material imports that serve strategically important sectors such as automotive, tyre manufacturing, and industrial production. As the investigation progresses, industry stakeholders will closely monitor its findings and the potential impact on supply chains, production costs, and market dynamics within India’s rubber and tyre sector.