Anti-Dumping Duty On N-Butanol Imports Extended Till 12 July 2026

(MENAFN- Live Mint) The Centre has extended the anti-dumping duty on imports of normal butanol (n-butyl alcohol) from the European Union, Malaysia, Singapore, South Africa, and the US until 12 July 2026, pending the completion of a sunset review to determine whether the levy should continue.

In a notification issued on 8 January, the Union finance ministry said the duty imposed in April 2021 will remain in force during the review period unless it is withdrawn, amended or superseded earlier.

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The extension follows a request by the designated authority, which initiated the review in September 2025 under the Customs Tariff Act and anti-dumping rules. The review has been initiated to examine whether the withdrawal of the duty would lead to the continuation or recurrence of dumping of normal butanol into India and result in injury to the domestic industry, it said.

Under trade remedy rules, anti-dumping duties are valid for five years and can be extended if investigations show that their removal could harm domestic producers.

Normal butanol is a key industrial chemical used in the manufacturing of paints, coatings, adhesives, solvents, chemicals, and pharmaceuticals. The original duty was imposed after it was found that imports from the five regions were entering the Indian market at unfairly low prices, impacting domestic manufacturers' profitability and capacity utilization.

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The continuation of the dut is expected to benefit domestic producers of normal butanol by protecting them from under-priced imports during the review period, while also providing stability to downstream industries, such as paints, coatings, and pharmaceuticals, that rely on a steady domestic supply of the chemical, according to industry experts.

Safeguarding domestic market

The Indian n-butanol market was valued at $119.92 million in 2024 and is projected to grow to $180.17 million by 2033, registering a compound annual growth rate of 4.63%, according to estimates by market research firm IMARC Group.

The market is seeing steady expansion, driven by a gradual shift towards bio-based n-butanol production and rising demand from the coatings and paints industry, where the chemical is widely used as a solvent and intermediate.

In India, the main domestic producer of n-butanol is Andhra Petrochemicals Ltd, which operates a dedicated n-butanol manufacturing facility and has historically been the country's key supplier of the chemical.

Bharat Petroleum Corp. Ltd (BPCL), through its Kochi refinery and associated petrochemical operations, is also considered an important domestic source, though its output is relatively limited compared to global producers.

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Apart from these large manufacturers, a number of Indian chemical companies, such as Vizag Chemical and Pon Pure Chemicals and other speciality chemical firms are active mainly as formulators, suppliers or traders, sourcing material domestically or importing to cater to downstream industries.

The continuation of the anti-dumping duty primarily benefits key domestic manufacturers by shielding them from low-priced imports, while indirectly supporting the broader domestic chemical ecosystem that depends on stable local production of n-butanol.

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