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Saturday, Oct 16, 2021
Outlook.com

More Power To The Powerful

The prime beneficiaries of the anti-dumping law have been producers, not the economy

More Power To The Powerful
More Power To The Powerful
outlookindia.com
-0001-11-30T00:00:00+05:53

KESAR Petro Products is an Indian manufacturer of Bisphenol-A, a life-saving drug intermediary. In 1994, it petitioned the government against dumping of Bisphenol-A by Japans Mitsui & Co. On investigation, the government felt Mitsui was indeed dumping the chemical, that is, selling it at lower than its production cost. On March 13, 1994, the government slapped a duty of Rs 7,477 per tonne against Mitsui. This was the second anti-dumping investigation in India.

By imposing a duty, did the government succeed in protecting the country's interests from the greed of multinational companies, as is usually made out in dumping cases? Let's look a little behind the news. Kesar is the sole producer of Bisphenol-A in India. Unfortunately, Kesar has a production capacity of just 5,000 tonnes, while domestic demand for the product is close to two lakh tonnes. By imposing anti-dumping duties against Mitsui - and later against Brazilian and Russian firms in 1995, and then a US firm in 1997 - and thus making imports of Bisphenol-A costlier, whom did the government benefit? Not its citizens....

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