USITC extended anti-dumping duty on Indian preserved mushrooms for 5 years
The extension was done as part of extension of anti-dumping duty orders on preserved mushrooms (mushrooms prepared or preserved by cleaning, blanching, slicing and cutting) from Chile, China, India, and Indonesia.
The United States International Trade Commission (USITC) extended the anti-dumping duty on Indian preserved mushrooms for another five years. The decision to extend the ban was taken on 29 July 2015 but it became public on 30 August 2015.
The extension was done as part of extension of anti-dumping duty orders on preserved mushrooms from Chile, China, India, and Indonesia. The anti-dumping duty was imposed on preserved mushrooms from these nations on 3 February 2015 and was suppose to end on 14 August 2015.
The USITC decided to extend the ban on import of preserved mushrooms from these nations after it found that revoking the anti-dumping duty orders would lead to continuation or recurrence of material injury within a reasonably foreseeable time.
Impact of the Extension
The action of USITC would have an impact on the domestic exporters as US is one of the major destination for India.
In 2014-15, India exported mushrooms worth 16.08 million dollars and during April-May of fiscal 2015-16, the exports were aggregated at 1.63 million dollars.
Earlier in 2014-15, India's mushroom exports to the US declined to 0.11 million dollars from 24.76 million dollars in 2011-12.
Punjab, Haryana, Himachal Pradesh, Uttar Pradesh, Rajasthan and Jammu & Kashmir are the major states which are producing the commodity. Solan in Himachal Pradesh is popular as 'Mushroom City of India'.
US, UAE, Russia and Israel are the major export destinations for Indian mushroom.
What are Preserved mushrooms?
'Preserved mushrooms' refer to mushrooms that have been prepared or preserved by cleaning, blanching, and sometimes slicing and cutting. Mushrooms are very nutritious, rich in proteins, fibre and have folic acid content that is uncommon in vegetables and amino acids which are usually absent in cereals.
Is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. It may vary from product to product and from country to country. Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.
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