India probes dumping of Indonesian multi-layer paperboard amid industry concerns

INDIA – India’s Directorate General of Trade Remedies (DGTR), under the commerce ministry, has launched an anti-dumping investigation into imports of virgin multi-layer paperboard originating from Indonesia.

The move follows a formal complaint filed by the Indian Paper Manufacturers Association (IPMA) on behalf of domestic producers who allege that aggressive underpricing by Indonesian exporters is causing material injury to the local industry.

Virgin multi-layer paperboard is widely used in high-end packaging applications, including pharmaceuticals, fast-moving consumer goods (FMCG), electronics, cosmetics, liquor, and publishing.

Its strategic role in value-added packaging has made it a sensitive product for local manufacturers trying to defend market share in a price-competitive environment.

According to the DGTR’s preliminary notification, the applicant has submitted sufficient prima facie evidence indicating that Indonesian imports are being dumped into the Indian market at unfairly low prices, impacting margins and volumes for domestic players.

If the investigation confirms these claims, the DGTR may recommend imposing anti-dumping duties to restore competitive balance. The final decision to impose such duties rests with the finance ministry.

This is not the first instance where India has taken trade remedy action against Indonesia in the paper sector.

In 2021, India imposed anti-dumping duties on uncoated copier paper imports from Indonesia, Thailand, and Singapore, citing similar injury to local players.

Likewise, in 2019, the DGTR initiated an investigation into imports of glazed newsprint and coated paper from select Asian nations.

These cases underscore India’s growing vigilance in shielding strategic manufacturing sectors from predatory pricing by overseas exporters.

Globally, anti-dumping measures are recognized instruments under the World Trade Organization (WTO) framework.

They allow countries to protect domestic industries from injury due to unfair trade practices, provided investigations prove material harm and a causal link to dumped imports.

Such probes typically evaluate key indicators such as declining production, profitability, sales volumes, and capacity utilization.

India’s paper industry has been vocal in demanding policy support amid rising import pressures and fluctuating raw material prices.

Industry experts suggest that unchecked imports, especially of value-added paperboard grades, could lead to job losses, underutilization of domestic capacity, and long-term erosion of manufacturing capabilities.

As the probe unfolds, stakeholders across packaging, print, and FMCG sectors will be watching closely, given the potential price implications and shifts in sourcing strategies that may result from a final anti-dumping duty.

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