India launches anti-dumping probe against Bangladesh over new export item

India has launched an anti-dumping investigation into Polyethylene Terephthalate (PET) film exported from Bangladesh. PET film is primarily used in the packaging of food, medicine, cosmetics, and industrial products.

As part of the investigation, the Directorate General of Trade Remedies (DGTR), an agency under the Indian Ministry of Commerce and Industry, has scheduled a virtual oral hearing for 6 August, according to the Bangladesh Ministry of Commerce.

In a letter issued on 13 July, the DGTR announced the hearing. Indian manufacturers allege that PET film is being exported from Bangladesh, China, and Thailand at "dumped prices," which they claim is harming the Indian domestic industry. Which is why, they have demanded the imposition of anti-dumping duties on these products.

An anti-dumping duty is an additional import tax imposed by a country when its authorities believe that foreign companies are selling products at an abnormally low price, thereby damaging the domestic industry of the importing country.

During this stage of the investigation, Bangladeshi exporters, Indian producers, importers and other stakeholders will present their positions and arguments.

According to the Ministry of Commerce, parties involved include Akij Biax Films Limited, the Bangladesh High Commission in New Delhi and the three Indian petitioner companies—Chiripal Poly Films Limited, Ester Industries Limited and Vacmet India Limited.

The letter from India stated that interested parties must submit the name of their institution, country, country code, email address, mobile number and the identities of participating officials or lawyers in advance. Arguments presented during the hearing must subsequently be submitted in writing.

Commerce Ministry officials noted that this investigation is significant for Bangladesh, as PET film is a promising export product and India is one of its major markets. While the DGTR initiated the probe based on complaints from Indian producers, the investigation is ongoing and no final decision has been reached.

Following the oral hearing, the investigation will proceed by reviewing written statements, counter-arguments and other data. Based on the final recommendations of the investigating authority, the Indian government may impose anti-dumping duties if deemed necessary or terminate the investigation if sufficient evidence is not found.

Speaking to Prothom Alo last Monday, Commerce Minister Khandaker Abdul Muktadir said, "We will gather the necessary data regarding PET film and request the Indian government not to impose anti-dumping duties." When asked when the request would be made, he replied, "Soon.”

Akij Biax Films Limited is one of the leading exporters of PET film from Bangladesh to India. A subsidiary of the Akij Bashir Group, the company began commercial operations in 2019. Its factory, located in Trishal, Mymensingh, produces PET film, which is essentially a plastic film used in the packaging industry. It is currently the country's only large-scale producer and exports to various countries, including India.

The company also produces Biaxially Oriented Polypropylene (BOPP), Cast Polypropylene (CPP) and stretch films. It claims to export approximately 10,000 tons of PET film annually, with the remainder sold in the domestic market.

Sheikh Bashir Uddin, one of the Akij Biax Films Limited Company's directors, told Prothom Alo that their exports are market-driven and do not involve dumping. He said the company is preparing to present its position at the hearing.

A 2025 report by Orion Market Research, an India-based private market research firm, estimated the global PET film market at approximately USD 11 billion, forecasting that it could nearly double by 2030.

This is not the first anti-dumping investigation India has conducted against Bangladeshi products. Anti-dumping duties have been in place on Bangladeshi jute and jute goods since 2017. Recently, following an interim review, the DGTR recommended re-imposing these duties. Anti-dumping duties are also currently in effect on hydrogen peroxide exported from Bangladesh.

In the past, India had previously initiated anti-dumping proceedings against Rahimafrooz batteries but withdrew the move after Bangladesh raised the issue within the World Trade Organization (WTO) framework. India has also completed anti-dumping investigations into Bangladeshi float glass and fishing nets, raising concerns that duties could be imposed on those products in the future.

Mustafizur Rahman, distinguished fellow at the at the Centre for Policy Dialogue (CPD), told Prothom Alo, "Given the reality of electricity and gas crises, it is hard to believe that Bangladeshi companies are exporting products to India at prices lower than production costs. In the case of Rahimafrooz batteries, India withdrew the complaint within 60 days of the discussion phase after the matter was taken to the WTO. I am confident that if Bangladesh can set more examples of approaching the WTO, remedies can be found."