The government may impose anti-dumping duty on import of a chemical, used in industries like plastics, from four countries, including China, for three years to guard domestic players from cheap shipments.
Imposition of the duty on imports of 'Methyl Ethyl Keton' from China, Japan, South Africa and Taiwan was recommended by the commerce ministry's investigation arm Directorate General of Anti-dumping and Allied Duties (DGAD).
Cetex Petrochemicals Ltd had filed an application for investigations into alleged dumping of the chemical.
After completion of the investigation, the DGAD in its final findings have stated that domestic industry has suffered material injury on account of the dumped imports.
"The authority recommends imposition of definitive anti-dumping duties on the imports...for 3 years," the DGAD has said in a notification.
While DGAD recommends the duty, the finance ministry imposes the same.
Imports of the chemical from these four countries increased to 44,470 tonne during July 2015 and September 2016 from 26,969 tonne in 2013-14.
The probe took into account data for July 2015 to September 2016 period.
Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in below-cost imports.
As a counter measure, they impose duties under the multilateral regime of WTO.
The duty is also aimed at ensuring fair trading practises and creating a level-playing field for domestic producers with regard to foreign producers and exporters.
India has already imposed anti-dumping duty on several products to check below-cost imports from countries including China.