Anti-Dumping Duty on Thin MDF Import; To Boost Domestic Industry Prospects

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The recent decision of the Indian Government to impose anti-dumping duty on imports of below 6 mm MDF boards from five countries is a positive outcome for domestic MDF producers. The interest of the domestic industry is certainly gaining weight, when cheap dumping from few countries was making the production in India unviable. The decision has been termed necessary, by Indian MDF manufacturers which will eventually extend a considerable relief and scope of growth in other thickness categories as well, according to MDF players

It is noted, Commerce and Industry Ministry has recommended for the imposition of anti-dumping duty on imports of MDF from Indonesia, Sri Lanka, Vietnam, Malaysia and Thailand, for five years to safeguard the domestic industry from subsidized imports. According to the issued notification, the domestic industry was badly affected with subsidized imports and to protect their interests the decision has been taken.

Speaking to The Ply Reporter, Mr Rakesh Agarwal, MD, Shirdi Industries Limited said, “In other countries, Particle boards and MDF manufacturing, is promoted by their country governments as Agro-Forestry supporting industries who enhance the income as well as tree cover hence foreign

Commerce and Industry Ministry has recommended for the imposition of anti-dumping duty on imports of MDF from Indonesia, Sri Lanka, Vietnam, Malaysia and Thailand, for five years to safeguard the domestic industry from subsidized imports.

produced PB/MDF products are actually subsidised and become cheap here in India. In our country, unfortunately PB and MDF is forestry-based product that gets no support that is why to protect from their cheap dumping, India producers demanded it.”

Mr Rakesh Agarwal added that “This move should have come a long back as the case of thin MDF board are no different that thick MDF category. In thicker category of more than 6 mm, there is already anti-dumping duty applies on various companies of Indonesia, Malaysia, Thailand etc who sell cheap below a certain level, and the same thing applies in below 6 mm segment as well. Earlier on 6 mm there was a provisional anti-dumping duty but later it became void when it was not re activated. The move will be effective when Ministry of Finance finally notify it in coming few weeks.”

A key player in thin MDF production, Mr Lalit Gupta, MD, Pioneer Panel Products said that it is a long-awaited step to safeguard the domestic manufacturers because producing thin MDF in India and selling against cheap dumped lot was not at all possible. We had incurred losses in this segment because of the cheap import but did kept on, but after the effect of the anti-dumping value, Indian producers will have an opening and chance to put up a fight against cheap import.

Commenting on the matter, a large importer explained that many of the companies who were doing cheap imports below the certain value will be affected but those companies who are already selling on a level playing price has no effect and their prices in India will be still accepted and viable.

The recommendation for such initiative was requested by Greenpanel Industries Ltd, Century Plyboards (India) Ltd. and Rushil Decor Ltd. They had filed application for imposition of the duty on the imports. Taking action on it, the ministry has taken this decision. The DGTR in his notification stated that recommendation for imposition of duty is equal to the subsidy margin and loss making by domestic industry. They found in their investigation that with the cheaper imports from these countries the domestic industry has to bear loss as the import volume is higher.

Presently, there are around 6 companies that are producing thin MDF, and catering larger domestic requirements. According to numbers presented, the domestic industry is reported to have adequate production capacity to meet the domestic needs of thin MDF.

Presently, there are around 6 companies that are producing thin MDF, and catering larger domestic requirements. According to numbers presented, the domestic industry is reported to have adequate production capacity to meet the domestic needs of thin MDF. To add further, many new companies are also coming up in this category, while existing companies are expanding their production capacity.

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