India has launched an anti-dumping inquiry into the import of sodium cyanide from China, the European Union, Japan, and Korea. The inquiry was initiated after Hindusthan Chemical Company and United Phosphorus Ltd filed a complaint with the Directorate General of Trade Remedies (DGTR), requesting an imposition of anti-dumping duty on imports from these countries.

Domestic Complaints

The applicants have alleged that the domestic industry is suffering material injury as a result of the import of sodium cyanide from these countries. Sodium cyanide is a poisonous chemical that is used in the extraction of gold and silver from their ores, as well as in the manufacturing of insecticides, dyes, pigments, and bulk drugs.

Probe Findings

The DGTR investigated the dumping allegations of the chemicals and found that the normal value and export price of sodium cyanide, when compared at the ex-factory level, prima facie established that the dumping margin is beyond the specified level. This indicates that there is sufficient evidence that the product is being dumped in the domestic market.

Implications

If material injury to domestic players is established, the DGTR will recommend the imposition of anti-dumping duty on imports. The final decision to impose duties will be made by the finance ministry. Under the World Trade Organization (WTO), the duty is aimed at ensuring fair trading practices and creating a level-playing field for all.

Way Forward

India has previously imposed anti-dumping duties on many products to nullify the effects of cheap imports, especially from China. It is important for India to take a strict stand going forward to safeguard its national interest.

Why In News

In April 2023, India initiated an anti-dumping inquiry into the import of sodium cyanide from China, the European Union, Japan, and Korea following complaints by domestic players. The inquiry was launched to investigate allegations of dumping, which is causing material injury to the domestic industry, and to ensure fair trading practices.

MCQs about Sodium Cyanide and Its Industrial Applications

  1. What prompted India to initiate an inquiry into anti-dumping for imports of sodium cyanide from China, the European Union, Japan, and Korea in April 2023?
    A. A complaint by domestic players, Hindusthan Chemical Company and United Phosphorus Ltd
    B. A complaint by the Chinese government and European Union
    C. A complaint by the United States government
    D. A complaint by Japanese and Korean corporations
    Correct Answer: A. A complaint by domestic players, Hindusthan Chemical Company and United Phosphorus Ltd
    Explanation: Domestic players, Hindusthan Chemical Company and United Phosphorus Ltd filed a complaint with the Directorate General of Trade Remedies (DGTR) for the anti-dumping probe into the import of sodium cyanide from China, the European Union, Japan, and Korea.
  2. What is the purpose of imposing anti-dumping duty on imports under the World Trade Organization (WTO)?
    A. To encourage fair trading practices and create a level-playing field for all
    B. To increase import of cheaper goods
    C. To create an imbalance in the trading market
    D. To favor specific countries for trading
    Correct Answer: A. To encourage fair trading practices and create a level-playing field for all
    Explanation: The aim of imposing anti-dumping duty on imports under the WTO is to encourage fair trading practices and create a level-playing field for all.
  3. What is the primary use of sodium cyanide?
    A. In the extraction of gold and silver from their ores
    B. In the manufacturing of food items
    C. In the production of clothing
    D. In the construction industry
    Correct Answer: A. In the extraction of gold and silver from their ores
    Explanation: Sodium cyanide is used in the extraction of gold and silver from their ores, as well as in the manufacturing of insecticides, dyes, pigments, and bulk drugs.

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