India extends anti-dumping duty on normal butanol imports for 5 years to shield domestic industry
The recommended duties will be imposed under the existing framework notified in 2021, with differentiated rates for specific producers and higher residual duties for non-cooperative exporters
In a significant move aimed at protecting the domestic petrochemical sector, India has decided to continue anti-dumping duties on imports of Normal Butanol from Malaysia, South Africa and the United States for another five years.
According to the notification published in The Gazette of India, the decision follows a detailed sunset review conducted by the Directorate General of Trade Remedies (DGTR), which concluded that removing the existing duties would likely lead to a resurgence of unfairly priced imports and further injury to the domestic industry.
The final findings came after an investigation initiated in September 2025 on the basis of a petition filed by Andhra Petrochemicals Limited (APCL), the principal domestic producer of Normal Butanol. The authority found clear evidence that dumping had continued during the period of investigation from April 2024 to March 2025, with import prices consistently undercutting domestic production costs and selling prices.
Normal Butanol, a key industrial chemical used in paints, coatings, pharmaceuticals and plasticizers, has witnessed a sharp rise in imports over recent years. Imports from the three subject countries nearly doubled compared to the base year, even as their landed prices dropped significantly, falling by over 35 percent, thereby exerting sustained pressure on domestic manufacturers.
The DGTR’s analysis revealed that despite selling over 90 percent of its output, APCL was forced into losses due to depressed import prices. Profitability indicators such as return on investment and cash profits turned sharply negative during the review period, while the company’s market share declined steeply, even as overall domestic demand grew by nearly 60 percent.
The authority also noted that exporters from Malaysia, South Africa and the United States continued to maintain positive dumping margins. Particularly concerning was the finding that a large share of exports from these countries to third markets were priced below cost, indicating a broader pattern of aggressive pricing that could intensify in India if duties were withdrawn.
Further strengthening the case, the DGTR observed that global trade dynamics, such as existing anti-dumping duties imposed by China on similar imports, could divert excess supply toward India, increasing the likelihood of renewed dumping.
The recommended duties will be imposed under the existing framework notified in 2021, with differentiated rates for specific producers and higher residual duties for non-cooperative exporters. These duties are expected to remain in force for five years, subject to formal notification by the Ministry of Finance.
Importantly, the DGTR dismissed concerns raised by downstream industries regarding cost escalation, noting that anti-dumping duties constitute only a marginal portion, around 1 to 3 percent of the landed price. It also highlighted that demand for Normal Butanol continued to grow robustly during the duty period, indicating no adverse impact on downstream sectors.
The decision comes at a time when domestic production capacity is expanding, with new capacities from Indian Oil Corporation adding to those of APCL and BPCL. Together, domestic producers are now positioned to meet a substantial share of national demand.
Overall, the extension of anti-dumping duties underscores the government’s continued commitment to ensuring fair trade practices and safeguarding domestic manufacturing from injurious imports.
