The government must impose anti- dumping duty on import of Chinese truck and bus radial tyres that continue to flood Indian market at cheaper prices to ensure a level-playing field for domestic players, JK Tyre Chairman Raghupati Singhania has said.
Almost 80 percent of the imports are at concessional duties thereby eroding a significant part of the market of the domestic tyre industry, Singhania said while addressing the company's shareholders at its AGM.
The domestic tyre manufacturers have undertaken large scale capacity additions with investments of nearly Rs 45,000 crore in the last few years, he added.
Seeking government intervention, Singhania said: "It is a matter of great concern that Chinese truck/bus radial tyres continue to flood the market unabated at dumping prices, thereby, threatening the large investments made in the recent past."
Seeking government intervention, Singhania said: "It is a matter of great concern that Chinese truck/bus radial tyres continue to flood the market unabated at dumping prices, thereby, threatening the large investments made in the recent past."
He further said the issue is not only about imports from China but also from other Asian countries with whom India has a Free Trade Agreement (FTA).
"It is indeed high time for the government to undertake necessary steps by the imposition of anti-dumping duties on such low-cost tyres," he added. The government has already taken steps towards addressing the concern raised by the domestic industry.
In a notification on August 7, the commerce ministry's investigation arm - Directorate General of Anti-dumping and Allied Duties (DGAD) - has recommended imposition of definitive anti-dumping duties on the imports of these tyres from China.
India may impose an anti-dumping duty of up to USD 452.33 per tonne on a certain variety of Chinese pneumatic radial tyres to guard domestic players from cheap imports.
Source: moneycontrol.com