Commerce ministry's investigation arm DGAD has recommended that the antidumping duty be retained for five more years on an engineering product used in several industries such as power and coal, imported from China and Thailand.
The duty is aimed at guarding domestic makers of the product, called 'grinding media balls', from below cost imports.
In its conclusion after carrying out sunset review investigations, the Directorate General of Antidumping and Allied Duties (DGAD) stated that the situation of domestic industry is likely to deteriorate if the existing antidumping duties are allowed to cease.
It also said that the goods are likely to enter the Indian market at dumped prices if the antidumping duties in force are removed.
"Having examined the likelihood of dumping and injury to be imminent in case of expiry of the current measure in place, the authority recommends continued imposition of antidumping duty in place...for a period of five years," the DGAD has said in a notification.
Following a complaint by the domestic industry, the DGAD started a sunset review investigation on July 4, 2017.
Major domestic producer of Grinding Media Balls AIA Engineering Ltd and Welcast Steels Ltd in their application to the directorate alleged likelihood of continuation or recurrence of dumping of the product from these two countries and requested for sunset review.
The final view for continuation of the duty will be taken by the finance ministry.
Anti-dumping duties are levied to provide a level playing field to the local industry by guarding against cheap below-cost imports.
Imposition of anti-dumping duty is permissible under the World Trade Organisation (WTO) regime.
The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a- vis foreign producers and exporters.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)