The government has dealt a severe blow to the Chinese trickery of destroying domestic industries by selling their cheap goods in the Indian markets. The Indian government has started keeping a close watch on the import of ‘Glufosinate’, an important herbicide, coming from China. In fact, it is feared that Chinese exporters are manipulating their prices to avoid taxes on cheap imports. This news has a direct impact on our domestic industry, because when cheaper goods come from outside, the business of local companies starts coming to a standstill. To stop this, the Revenue Department has immediately alerted the Custom officials.
Action on China’s dumping game
The Directorate General of Trade Remedies (DGTR) has conducted a preliminary investigation into this entire matter. A big revelation has come to light in this investigation. It has been learned that Chinese exporters are trying to negate the effect of anti-dumping duty to maintain their hold in the Indian market. For this, they have shown cleverness and reduced their export prices considerably. In business language this is called ‘dumping’. The government has sensed this move. Now the customs officials have been given strict instructions to do a provisional assessment of the import of this chemical.
Guarantee will have to be given along with custom inspection
This new decision will have a direct impact on Indian importers who import this chemical from China. Now those importing this medicine in the country will not get relief just by paying the old anti-dumping duty. The government has tightened the rules and said that importers will also have to submit a financial guarantee. The motive behind this is absolutely clear. If the amount of duty is increased in the coming days after completion of the investigation, then that increased amount can be compensated through this guarantee. This will provide protection to domestic companies from cheap goods from China.
Role of this medicine in commercial farming
The drug ‘Glufosinate’ on which this whole controversy is going on is actually a very powerful herbicide. It is used extensively in large scale commercial farming in our country. It is especially used in cash crops like corn, soybean, cotton as well as canola. When unwanted grass or weeds grow in the fields along with the main crop, this medicine destroys them. The most important thing is that its use does not cause any harm to the main crop.
Two other important decisions related to foreign trade
Not only China, the government has also taken some other steps to protect domestic producers on the foreign trade front. Along with America, Malaysia, ‘Butyl Alcohol’ coming from South Africa has also been tightened. The government has extended the anti-dumping duty on this chemical for the next five years. Apart from this, a big exemption has also been announced under the India-UK Comprehensive Economic Trade Agreement (CETA). Now if special animals are brought from outside for international events, any big exhibition or selected government programs, then no customs duty or IGST will have to be paid on them.
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