DGTR initiates countervailing duty investigation into Chinese insoluble sulphur imports

Key facts

• India's Directorate General of Trade Remedies (DGTR) initiated a countervailing duty (CVD) investigation into imports of insoluble sulphur from China on September 30, 2026, following a petition by OCCL Limited, the sole domestic producer.
• The investigation, registered as Case No. CVD/OI/008/2026, covers the period April 1, 2025 to March 31, 2026 and examines whether Chinese producers benefited from government subsidies causing material injury to the Indian industry.
• OCCL's petition lists 79 subsidy programmes allegedly extended by Chinese central and provincial governments, including preferential loans, tax concessions, export financing, land and electricity at less than adequate remuneration, and direct grants.
• The DGTR had earlier recommended anti-dumping duties on Chinese and Japanese insoluble sulphur imports in March 2025, notified by the Ministry of Finance in June 2025, and an anti-absorption investigation concluded in September 2026 led to a modification of the duty quantum.
• Insoluble sulphur, a polymeric form of sulphur used as a vulcanising agent in rubber products, is consumed predominantly by India's tyre industry, which accounts for over 90 per cent of domestic demand.
• China did not attend a consultation meeting scheduled for September 28, 2026 under the WTO Agreement on Subsidies and Countervailing Measures, after which the DGTR proceeded with initiation.
• Interested parties must register on the DGTR's SETU portal and file responses within 37 days of receiving the non-confidential application, failing which findings may be based on available facts.