Phenol Prices have reportedly gone up after imposition of provisional Anti Dumping Duty on import from Thailand and United States of America. Indian Laminate and Wood Panel industry, which is main user of phenol fears that the price of Phenol will further go up in the coming month, which will impact the input cost of laminates and plywood in India.
After findings, the DGTR has initiated Provisional Antidumping duty on imports of “Phenol” into India exported from Thailand and United States of America. The Authority notes that the imposition of the anti-dumping measures would not restrict imports from the subject countries in any way, and therefore, would not affect the availability of the product to the consumers.
The authority also invites comments on these provisional findings from all interested parties and the same, considered relevant by the Authority, would be considered in the final findings. Domestic industry, exporters, importers and other interested parties known to be concerned are being addressed separately by the Authority, who may make their views known, within thirty days from the date of the publication of these preliminary findings.
It is noted that Deepak Phenolics Ltd., Hindustan Organics Chemicals Ltd. and SI Group India Pvt. Ltd. filed an application before the Designated Authority for imposition of anti-dumping duty (ADD) on imports of “Phenol” from Thailand and United States of America (USA).
Commenting of this move Mr JL Ahuja, Convenor, COUPI said to The Ply Reporter that the antidumping duty has been proposed by DGTR based on preliminary investigation and findings. This is very unfortunate that the proposed quantum of antidumping duty is huge, unexpected and unprecedented. They have pitched the price of $ 989 approximately from Thailand where as international import price in India is $560. So, now based on this finding, this difference will go as dumping duty, I call it dumping margin.
Mr. Ahuja blames that it will lead to a monopolistic manufacturer Deepak Phenolics, who has been trying to get undue favor from the government. First he wanted to be banned the import of phenol, that is the major source available to the country. Now, the antidumping rule has been taken and the department gone to undue hurry. They never cared for the representation in COVID and the kind of hard times the industry is going through. ILMA is trying to find out the legal action that can be taken forgetting this unfair move removed.
Mr Ahuja adds, “I am sure the prices will increase, which we have expressed at various forums of the government and that the idea of all protections including antidumping is to seek certain protection to make a larger profit. Unfortunately the period of injury which they have taken is nearly six months which during the period they had just started their production; and the prices at that time were very high internationally.”
“They are trying to misuse the provisions and have taken the protection of ‘Make in India’ and other schemes like self reliant India. This ploy is more relevant to the downstream industry, laminate manufacturers who are almost 300 small and medium micro industries spread over different parts of India, have an advantage. It is giving large-scale employment to the lower segment of the market. No consideration taken towards this aspect, because the domestic industry of Phenol is clearly interested only in their own welfare and this has been achieved through protection given by the government, said Mr. Ahuja.
Mr. Sajjan Bhajanka, President, FIPPI presented to the Commerce Ministry, Govt of India in this regard and stated that DGTR has recommended provisional Anti-Dumping Duty (ADD) on imported Phenol under their active guidance. FIPPI considers it imperative to bring the following to their notice to remove the misnomers and smokescreen insulated in the clamouring for state intervention in order that an appropriate decision is taken on the impugned recommendation of DGTR fixing a CIF import value of USD 942 as non-injurious price.
FIPPI blames that the Learned DGTR and its team in its anxiety and haste to benefit Deepak Phenolics forgot to see corresponding export data of the same very Deepak Phenolic which ranges in the zone of USD 550 to 760/MT, bulk of which are exported to SE Asia where the Thailand exporter is also located.
FIPPI says that one hand is the interest of one large producer of Phenol namely Deepak and on the other hand lies the interest of at least 3 million people including over 2 million farmers engaged in Agro-Forestry.
The effect of this recommendation is made by FGTR is that it transfers private wealth of vast number of small businesses and individuals to the pockets of a favoured crony without any public purpose in it. The proposed Anti-Dumping duty is like bull-dozing the MSME factories already ravaged in lockdown following the pandemic. Instead of rendering any meaningful support to the Consumers industries, the insanity in AD measure is only going to perform the funeral of vast numbers of MSMEs without doubt, blames FIPPI.
FIPPI urges the Government to suspend the recommendation on one hand and order forensic audit in the false data with DGTR and other Departments like DCPC and punish them for perjury under IPC 193-198, even if there is absence of rules in AD Rules, on the basis that IPC will apply where the Statute does not provide any recourse for falsification and perjury.