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India extends anti-dumping duty for five years on Malaysian glass

India's Trade Watchdog has recommended that anti-dumping duty on glass imports to India from Malaysia be extended for another five years. They warned that removing tariffs would trigger new dumping, and harm domestic producers who are already harmed by cheap imports.

Analysts said that while the Finance Ministry must decide whether or not to extend the duty, the recommendation shows India's larger push to protect its local industries against cheap imports coming from Southeast Asia.

In 2020, the government will impose duties on clear float-glass from Malaysia. India's construction industry and auto manufacturing sector are experiencing rapid growth, resulting in a surge in demand for this material.

The Directorate General of Trade Remedies launched a new investigation at the request of Indian glass producers Asahi India Glass. Saint-Gobain India and Gold Plus Glass Industry.

The DGTR released its final findings late Thursday and stated that even with duties in place, India's imports from Malaysia would rise sharply, reaching 361,000 metric tonnes in 2024. This represents about 18% the market.

The authority stated that prices of Malaysian glass are up to 40% cheaper than those of Indian manufacturers. It added that domestic producers have suffered losses and increased inventories as a result of the sustained price undercutting.

The current deadline for the expiration of duties on imports of Malaysian glass is February 2026. The DGTR, however, warned that their removal would lead to a flood of cheap imports and hurt local production and investments. It recommended that definitive anti-dumping duty be imposed for a period of five years.

The DGTR estimated dumping rates of up to 30 percent for certain Malaysian exporters, while injury margins could reach up to 70 percent for other exporters.

In September, the trade remedies body released 15 final findings from similar dumping investigations that covered sectors such as glass fibers and steel, solar cells and chemical goods. (Reporting and editing by Joe Bavier; Manoj Kumar)

(source: Reuters)