Economics Prelims cum Mains

Anti-dumping duty put on saccharine

The News:

  • Recently, the Finance Ministry has imposed an anti-dumping duty of $1,633.17 per tonne on the import of saccharine from Indonesia.

 

Important Terms:

Dumping: Dumping is a process where a company exports a product at a price lower than the price it normally charges in its own home market.

Anti-Dumping Duty: An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are being dumped in their national market, undercutting local businesses and markets.

 

About Saccharine

  • Saccharin is an artificial sweetener used in place of sugar because it has no calories and does not increase blood sugar.
  • It was the first artificial sweetener, originally synthesized in 1879.
  • It does not break down in our body i.e. during digestion. Saccharin passes through the body unchanged and provides no calories in the process.
  • Saccharin is about 200-700 times sweeter than sugar. With a sweetness so high, only a small amount of saccharin is needed to deliver the same level of sweetness as sugar.
  • It can be used in both hot and cold foods.

 

Note: Artificial Sweeteners and other sugar substitutes:

  • Acesulfame potassium
  • Aspartame
  • Cyclamate
  • Lead acetate
  • Mogrosides
  • Stevia
  • Sucralose
  • Sugar alcohols

 

Saccharine imports in India from Indonesia

  • In 2017-18, India imported $4.36 million worth of saccharine from Indonesia, which is 43% of the total imports of the sugar-substitute compound.

Decline in Imports

  • In the April 2018 to February 2019 period, India imported only $1.48 million worth of saccharine from Indonesia, about 20% of its total imports from around the world.

 

Why anti- dumping duty imposed on Indonesian Saccharine?

  • The Saccharine has been exported to India from Indonesia below their normal price and consequently, the domestic industry of India has suffered material injury.
  • Thus, anti-dumping duty was imposed to protect the domestic market.

 

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