India’s Directorate General of Trade Remedies (DGTR) has initiated a countervailing duty investigation into imports of insoluble sulphur from China, following a petition by OCCL Limited, the country’s sole domestic producer of the chemical.

The probe, registered as Case No. CVD/OI/008/2026 and initiated on September 30, will examine whether Chinese producers and exporters benefited from government subsidies that are causing material injury to the Indian industry. The investigation period covers April 2025 to March 2026.

OCCL’s petition lists 79 subsidy programmes allegedly extended by Chinese central and provincial governments. These include preferential loans, tax concessions, export financing, and land and electricity provided at less than adequate remuneration. The company says these benefits allow Chinese exporters to undercut domestic prices unfairly.

Insoluble sulphur is a polymeric form of sulphur used as a vulcanising agent in rubber products, with India’s tyre industry accounting for over 90 percent of demand. The subsidy probe follows earlier trade remedies on the same product, including anti-dumping duties recommended in March 2025 and an anti-absorption review concluded this September.