The Union Government has imposed a duty of $3.33 per kg of paracetamol imported from China and Taiwan, the second case of anti-dumping duty involving over the counter (OTC) drugs. Prior to the imposition of anti-dumping duty on paracetamol, government had imposed duties on 16 pharmaceutical products with analgin as the sole OTC drug to come under the purview of such a duty. Investigations against paracetamol imports from China and Taiwan were launched following petitions filed by four domestic manufacturers, which included two Hyderabad-based firms Triton Laboratories and Sri Krishna Pharmaceuticals besides Srinivasa Agro Industries & Drugs, Vijaywada and Solapur-based Vamsi Labs. The petitioners had alleged that paracetamol was a product reserved for production by the small scale industry and a large number of companies shut shop due to dumping.

In the final findings notified last week, the Directorate General of Anti-Dumping and Allied Activities (DGAD) said imports of paracetamol from China and Taiwan have increased from 6.56 lakh kg in 1997-98 to 8.76 lakh kg in 1999-2000. Also, increase in import of paracetamol from the two countries was significantly higher than the overall import of the drug. The notifications further cited exporters have consistently reduced their prices in 1999-2000, the period of investigations, forcing domestic producers to slash prices.

The DGAD concluded that the market share of the four petitioners had decreased during the period of investigation. "The petitioners have been forced to sell at prices below their non-injurious price resulting in losses," the notification said, adding, "Imports have undercut prices of the domestic industry".