In a major move to protect domestic manufacturers, India’s Directorate General of Trade Remedies (DGTR) has officially initiated a comprehensive anti-dumping investigation into the imports of caprolactam originating from China, Russia, Thailand, and the United States.

The Commerce Ministry's trade-defence arm launched the probe following a formal complaint filed by Gujarat State Fertilizers & Chemicals Limited, the primary domestic producer.

The applicant alleged that low-priced foreign shipments are being dumped into the Indian market, causing significant material injury to local industry. Caprolactam is a vital chemical compound predominantly used as a key raw material to produce Nylon-6, which is further processed into nylon tyre cord fabric and nylon filament yarn for the textiles sector.

According to official notifications, the DGTR found sufficient prima facie evidence of dumping and subsequent injury to warrant the investigation. Notably, import volumes of the chemical surged substantially even as local demand declined. Compounding the issue, landed prices of these foreign imports have remained significantly below the selling costs and cost of production of domestic players, severely undercutting the local market.

The investigation will thoroughly examine the degree, existence, and economic effect of the alleged dumping. If the trade regulator concludes that these foreign imports have unfairly harmed Indian businesses, it may recommend the imposition of strict anti-dumping duties to restore a level playing field.