Commerce Ministry not for imposing anti-dumping duty on batteries

India is unlikely to impose anti-dumping duty on batteries from China and Vietnam as the commerce ministry in its probe has concluded that the imports have not caused material injury to domestic players.

In its final findings, the directorate general of anti-dumping and allied duties (DGAD) has recommended that imposition of the duty on the imports "is not required".

The Association of Indian Dry Cell Manufacturers had filed the application for the dumping probe on imports of 'AA Dry Cell Batteries' from the two countries.

"Having initiated and conducted the present investigation into dumping, injury and causal link in terms of the anti- dumping rules, the authority is of the view that the dumped imports have not caused material injury to the domestic industry," DGAD has said in a notification.

It has concluded that a huge amount of profit is made by the domestic industry despite dumping and "production, sales and capacity utilisation have declined, but the market share of domestic industry has declined marginally".

Though during the period of investigation (April 2014 - March 2015), it said, significant volume of imports have entered the Indian market at dumped prices, it has not impacted the domestic industry as it caters to a different market segment.

The final view on the DGAD's recommendations will be taken by the finance ministry.

Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.

Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.