India introduces anti-dumping measures on vitamin-A and sulphur imports to protect domestic industry
This decision aligns with World Trade Organisation (WTO) regulations and is expected to stabilize pricing for Indian manufacturers while discouraging unfair trade practices.
INDIA – India’s Ministry of Finance has imposed five-year anti-dumping duties on imports of Vitamin A Palmitate and insoluble sulphur from China, Japan, Switzerland, and the European Union, aiming to protect domestic manufacturers from underpriced foreign competition.
This move follows findings by the Directorate General of Trade Remedies (DGTR), which determined that dumping practices were causing material injury to Indian producers.
Vitamin A Palmitate, widely used in cosmetics, pharmaceuticals, and fortified foods, will now be subject to duties ranging from USD 0.87/kg (DSM, Switzerland) to USD 20.87/kg (other Chinese exporters), with a medium rate of USD 11.09/kg on EU imports.
Meanwhile, insoluble sulphur, a key vulcanization agent used in rubber processing and cosmetic packaging, will face tariffs between USD 259 and USD 358 per metric ton, depending on the exporter.
Chinese imports will be charged USD 307/MT, while Japanese exporters will see rates between USD 259 and USD 358/MT.
The decision, which took immediate effect, aligns with World Trade Organisation (WTO) regulations and is expected to stabilize pricing for Indian manufacturers while discouraging unfair trade practices.
Manish Kr Shubhay, a multidisciplinary dispute resolution expert and Partner at The Percept Law Offices, said, “With global supply chains realigning, India is now far more proactive in using WTO-compliant instruments to protect its domestic industry.”
“The Vitamin-A Palmitate case is another example of this assertiveness.”
The new tariffs are set to reshape supply chains, prompting companies to explore alternative sourcing strategies or expand domestic production.
Industry analysts predict that these duties may increase production costs for cosmetic brands reliant on imported Vitamin A derivatives, potentially leading to price adjustments in skincare formulations.
In addition, the move signals India’s broader commitment to strengthening its trade defences, particularly in sectors vulnerable to low-cost imports.
The long-term impact on cosmetic formulations, packaging materials, and trade partnerships remains to be seen, but the industry is expected to adapt swiftly to the new regulatory landscape.
According to a report by Maximise Market Research, the global vitamin A market was valued at USD 565.18 million in 2023 and is projected to grow at a CAGR of 4.81%, reaching nearly USD 785.24 million by 2030.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
