In a preliminary findings on calcium carbide imports, the designated authority, anti-dumping cell, last week imposed provisional duty of Rs 1,047 per tonne for imports from China and Rs 1,460 for shipments from Romania.

The designated authority in the ministry of commerce Rathi Vinay Jha said he gave 40 days time to exporters, importers and other interested parties besides the petitioner - domestic manufacturers - to present their views on the duty.

Anti-dumping investigations are initiated when the complainants charge that exports of a specified good by a particular country is priced lower than the rates prevailing in the domestic market there.

Complainants would also have to prove the injury caused by such imports.

If the charges are found true, then anti-dumping duty is imposed to eliminate the injury to domestic industry in order to establish fair and open competition.

"The domestic industry has suffered injury. A casual link between dumping and injury has been established," Jha said.

The designated authority said quantum of calcium carbide imports had increased over the years in absolute terms and quantum of imports from China and Romania had also risen.

Though the production, capacity utilisation and sales quantity of domestic manufacturers had increased during 1994-95 and 1995-96, it decreased subsequently in view of increased imports, she stated.

Market share of imported goods had increased over the years as also of closing stocks. Prices of chemicals produced by the domestic industry had declined and these collectively and cumulatively established that indigenous industry had suffered material injury.

Jha held that rise in market share of imports from China and Romania had led to decline in market share of indigenous industry and dumping resulted in the domestic manufacturers holding higher stocks.

It also resulted in lower prices for domestic manufacturers despite a rise in input prices, the authority held, adding that between April and July 1997 indigenous industry suffered losses.

In making the conclusion, the anti-dumping cell found a 9.58 per cent as dumping margin in export prices of China and 46.03 per cent in case of Romania.

Indian calcium carbide manufacturers, represented by four large producers including Birla Carbide, had contended that there had been considerable rise in volume of dumped goods at significantly lower prices.

The exporters from Romania contended that prices were based on production expenses and rates were controlled by the government there. Modification of prices, including that of exports, without economical substantiation would be illegal.

Calcium carbide importers in India have charged manufacturers with forming a cartel to raise prices of the chemical by 30 per cent.

The All India Industrial Gases Manufacturers' Association, whose members import a significant quantity, contended that quality of local calcium carbide was inferior to that of imported goods. As long as the imports were restricted gas manufacturers have had to shut their units for over 15 days in a month, they said.

Calcium carbide supply had improved only after imports were brought under open general licence, they added. The duty would have to made definitive in six months time after which it will be effective for five years.