US Commerce Department finds Indian oleoresin paprika sold below fair value, received subsidies

Washington: The US Commerce Department has determined that Indian oleoresin paprika was sold in the United States below fair value and that its producers received countervailable government subsidies, moving the trade case closer to the possible imposition of duties.

In two final determinations published on Friday, the department assigned dumping margins ranging from 4.24 per cent to 5.78 per cent and subsidy rates ranging from 18.67 per cent to 25.42 per cent to the Indian companies examined.

The investigation covered imports between April 1, 2024, and March 31, 2025.

Oleoresin paprika is a concentrated extract produced from capsicum peppers. The highly coloured liquid, generally red or orange, is used as a colouring and flavouring ingredient in food, cosmetics and other products.

Commerce calculated a dumping margin of 5.78 per cent for Synthite Industries Private Limited and 4.24 per cent for Mane Kancor Ingredients Private Limited.

The rate for Indian producers and exporters that were not individually examined was fixed at 5.08 per cent.

A dumping margin measures the extent to which a foreign product is sold in the United States at less than its calculated fair value.

In the accompanying countervailing-duty investigation, Commerce assigned Synthite Industries a subsidy rate of 25.42 per cent and Mane Kancor a rate of 18.67 per cent.

The rate for all other Indian producers and exporters was set at 21.90 per cent.

The department said it examined subsidy information supplied by the two Indian companies and verified relevant sales, cost and accounting records between April and June.

Commerce also made a finding of “critical circumstances” concerning Synthite Industries in the subsidy investigation. It did not make the same finding for Mane Kancor or other Indian producers and exporters.

As a result, the suspension of liquidation — the process through which US Customs and Border Protection makes a final calculation of duties — will continue for covered Synthite imports entered from November 8, 2025, through June 5, 2026.

For other applicable Indian imports, the suspension covers merchandise entered from February 6 through June 5, the department said.

Commerce separately concluded that critical circumstances did not exist in the antidumping portion of the investigation for Synthite, Mane Kancor or other Indian exporters.

The proceedings are not yet complete. The US International Trade Commission must now determine whether imports of the Indian product materially injured or threatened injury to a domestic American industry.

The commission is expected to issue its final injury determination within 45 days.

If the commission finds no material injury or threat, the proceedings will be terminated, deposits will be refunded and the suspension of liquidation will be lifted.

IANS