FSP is used for manufacturing upholstery, mattresses, pillows, bolsters, transport seating and packaging.
The probe was initiated after Manali Petrochemicals Limited, the sole producer of FSP in India, filed an application alleging that cheap imports are hurting domestic industry.
Manali Petrochemicals also urged that China be treated as a non-market economy.
The DGTR said Manali Petrochemicals has provided prima facie evidence establishing that FSP imports have harmed the domestic industry.
“The volume of imports has increased significantly over the injury period, both in absolute terms and in relation to production and consumption in India,” the DGTR notice said, adding that the price of imports from China and Thailand have declined significantly. “There is sufficient prima facie evidence that injury is being caused to the domestic industry by the dumped imports from the subject countries,” the DGTR said.
