India has initiated an anti-subsidy investigation into imports of paperboard from China and Indonesia, following concerns that subsidised shipments are impacting domestic manufacturers.
The probe has been launched by the Directorate General of Trade Remedies (DGTR) after receiving complaints from local industry players alleging that exporters from the two countries are benefiting from government subsidies, enabling them to supply paperboard at unfairly low prices.
According to the application filed with the DGTR, such imports have led to price undercutting and margin pressure for Indian producers, affecting profitability and capacity utilization. The investigation will examine the extent of subsidies provided and determine whether they have caused material injury to the domestic industry.
If the probe confirms the allegations, the DGTR may recommend the imposition of countervailing duties to offset the impact of subsidised imports and restore a level playing field.
Paperboard is widely used in packaging, including for consumer goods, food products, and industrial applications, making it a critical input for several sectors of the economy. Industry stakeholders note that a surge in low-priced imports can disrupt the domestic market and hinder investment in local manufacturing.
The investigation is expected to cover a specified period for assessing subsidy margins and injury, with inputs sought from exporters, importers, and other interested parties. Authorities will also evaluate trends in import volumes, pricing, and market share.
The move reflects India’s continued use of trade remedy measures to safeguard domestic industries from unfair trade practices, particularly in sectors facing rising import competition.
A final decision on the imposition of duties will be taken after the conclusion of the investigation process, based on the findings and recommendations of the Directorate General of Trade Remedies.
