New Delhi, Jan 24 (PTI) India may impose antidumping duty on a chemical used in pharma industry from China, Germany and Saudi Arabia as the commerce ministry has started a probe into an alleged dumping of the product following complaints by domestic players.

Balaji Amines Ltd has filed an application before the Directorate General of Antidumping and Allied Duties (DGAD) for initiation of anti-dumping investigation on imports of 'Di Methyl Formamide' from these three countries.

The DGAD, under the commerce ministry, has said in a notification that it has found "sufficient evidence of dumping" of the chemical from these countries.

The authority "hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry", the notification said.

If established that dumping has caused material injury to domestic players, the directorate would recommend imposition of anti-dumping duty on the imports.

Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in below-cost imports.

As a counter measure, they impose duties under the multilateral regime of WTO.

The duty is aimed at ensuring fair trading practises and creating a level-playing field for domestic producers with regard to foreign producers and exporters.

India has already imposed anti-dumping duty on several products to tackle cheap imports, including from China.

The country has imposed the duty on as many as 98 products, as on December 27 last year, imported from China.

Anti-dumping investigation into Di Methyl Formamide may lead to duties if dumping causes material injury. An anti-dumping investigation has been initiated into imports of Di Methyl Formamide from China, Germany and Saudi Arabia after a domestic application; the authority found sufficient evidence of dumping and will investigate whether that dumping caused material injury to the domestic industry and may recommend imposition of anti-dumping duty if injury and causation are established under the multilateral trade remedies framework.