Vietnam at risk of being investigated by India for anti-dumping of rubber

The Competition Management Department (Ministry of Industry and Trade) has just issued a warning about the risk of India launching an anti-dumping investigation on Vietnamese natural rubber products due to the sharp increase in imports to this country.

According to this agency, in early September 2014, individuals and organizations growing rubber, especially small producers in the Kerala region of southern India, petitioned the Government to impose anti-dumping duties or increase import duties on imported natural rubber to protect the domestic production industry.

Representatives of the rubber industry said that the price of imported rubber has decreased by 16% in the first 8 months of the year, causing disadvantages for domestic producers who have to compete with imported goods. Mr. R. Sanijth - President of the Association of Manufacturers of Southern India (UPASI) said that the Government needs to take urgent measures to protect the interests of more than a million small-scale rubber farmers, because the production cost has increased due to the increase in input costs, wages, and transportation costs.

Indian rubber producers have proposed an anti-dumping investigation into natural rubber from Vietnam, Thailand and Indonesia.

He added that if rubber prices in the Indian market continue to fall and the Government does not intervene to protect the interests of rubber growers against the increase in imports, most of them may be forced to abandon rubber cultivation or switch to other crops.

Besides, rubber growers in India also requested the Government to study and issue regulations on import quotas under the import licensing program; the authorities in the states also need to review the standards prescribed for rubber to limit imports.

India is currently the world's fifth largest producer of natural rubber, mainly in the South, but imports have increased about fourfold over the past six years. According to research results of the Indian Chamber of Commerce and Industry (ASSOCHAM), natural rubber exports from Vietnam account for 24%. Rubber production in India has decreased from 919,000 tons in 2012 to 849,000 tons in 2013, equivalent to a decrease of nearly 8%, while global production increased by nearly 4%.

Preliminary statistics from the General Department of Vietnam Customs show that Vietnam's rubber exports to India in the first 9 months of 2014 reached more than 58,300 tons, worth 108 million USD, accounting for 8% of total export volume and 9% of total rubber export turnover of the country.

In response to the above-mentioned call for help from Indian rubber growers, the Competition Management Department recommends that Vietnamese exporters need to monitor the situation to have appropriate responses, such as reviewing export prices and coordinating with automobile tire manufacturers to protect their interests when necessary.

In addition to Vietnam, Thai and Indonesian exporters have also been warned about the risk of anti-dumping investigations into natural rubber in India. Currently, Indonesia accounts for 42% of total natural rubber imports into India, while Thailand accounts for 26%.

According to VnExpress