Montelukast Sodium from China under Anti-dumping Probe – Complainant Morepen Laboratories

[DGTR Initiation Notification SETU Case ID: AD/OI/053/2026 dated 24.09.2026]

1. Investigation initiated: DGTR has initiated an anti-dumping investigation concerning imports of Montelukast Sodium originating in or exported from China PR. The notification is dated 24 September 2026. SETU Case ID: AD/OI/053/2026.

2. Applicant: Morepen Laboratories Limited has filed the application seeking anti-dumping action.

3. Product under Consideration (PUC): Montelukast Sodium, used primarily as an API in pharmaceutical formulations for respiratory and allergic disorders, including asthma and rhinitis.

4. Product scope: The investigation covers Montelukast Sodium in all forms, grades, purities, particle sizes and packaging, provided it has the essential characteristics of Montelukast Sodium.

5. Unit of measurement: Kilograms (KG).

6. HS Classification: Imports have been reported under:

o 2933 39 90

o 2933 49 90

o 2933 99 90

o 2942 00 90
Customs classification is indicative only and not binding on the scope of the investigation.

7. PCN methodology: The applicant has not proposed a Product Control Number (PCN) methodology. Interested parties may submit comments on the PUC scope and propose PCN methodology within 15 days of transmission of the relevant intimation.

8. Like Article: DGTR has prima facie treated the domestically produced Montelukast Sodium as a like article to the Chinese product, based on physical and chemical characteristics, functions, uses, pricing, distribution, marketing and substitutability.

9. Subject Country: China PR.

10. Period of Investigation (POI): 1 April 2025 to 31 March 2026. The injury period covers FY 2022-23, FY 2023-24, FY 2024-25 and the POI.

11. Domestic Industry: Morepen Laboratories has stated that it has not imported the subject goods from China PR and is not related to Chinese producers/exporters or Indian importers. DGTR has found that Morepen constitutes the domestic industry and satisfies the standing requirement.

12. Captive consumption issue: Some Indian producers manufacture Montelukast Sodium primarily for captive consumption in downstream formulations for export. DGTR will examine during the investigation whether such production should be included in total Indian production for determining domestic-industry standing.

13. Alleged dumping: The applicant claimed that China PR should be treated as a non-market economy for determination of normal value. DGTR found that the comparison of normal value and export price prima facie establishes a positive dumping margin above the de-minimis level.

14. Export price: Export price has been determined using DG Systems transaction-wise import data, with adjustments for ocean freight, marine insurance, bank charges, port expenses, inland freight, and loading/unloading charges.

15. Injury to domestic industry: The application indicates that Chinese imports:

• Were nil during the first two years of the injury period;
• Commenced in 2024-25;
• Increased sharply during the POI;
• Acquired a significant share of the Indian market;
• Had declining landed prices.

16. Price effect: The landed price of Chinese imports declined sharply and remained below the domestic industry's cost of sales. However, it remained marginally above the domestic industry's selling price, meaning DGTR found no prima facie price undercutting; the adverse price effect was reflected principally in price suppression/constraint.

17. Performance deterioration: During the POI, the domestic industry's production, capacity utilisation, domestic sales and market share declined, while inventories increased. Profits, cash profits and return on capital employed turned negative.

18. Causal link: DGTR has found prima facie evidence of material injury and a causal link between the alleged dumping from China PR and injury to the domestic industry. The effect of declining Indian demand and other known factors will also be examined during the investigation.

19. Anti-dumping investigation: DGTR has therefore formally initiated the investigation to determine the existence, degree and effect of dumping and to recommend the appropriate anti-dumping duty, if warranted.

20. Provisional/retrospective duty requests: Morepen has requested:

• Preliminary findings and provisional anti-dumping duty; and
• Retrospective imposition of anti-dumping duty.
  DGTR stated that these requests will be considered at the appropriate stage of the investigation and were not being determined at initiation stage.

21. Submission through SETU: Interested parties must register and file submissions through the SETU portal, quoting Case ID AD/OI/053/2026.

22. Effect of Notification: No anti-dumping duty has been imposed at this initiation stage. The notification starts the investigation into whether imports of Montelukast Sodium from China PR are dumped and causing injury to the Indian domestic industry.

Key trade point: This investigation is particularly relevant because DGTR has identified a pattern of rapidly increasing Chinese imports, declining import prices and significant deterioration in the domestic industry's financial and operating indicators, while also noting that price undercutting itself was not established prima facie.