Confirming the developments, top sources in the Rubber Board told The Financial Express that the board has initiated "preliminary steps" to check the dumping of polyiol and isocynate by certain developed countries.

"Once the data is ready we will be approaching the director general of anti-dumping for a thorough enquiry", the source added.

It may be recalled that the latex manufacturers, hit hard by the crash in prices were alleging dumping of polyurethane by several developed countries and clamouring for imposing safeguard duty on the product imports. However, a meeting convened by the board acouple of days back felt that while the actual import of polyurethane has been declining over the years the import of polyiol and isocynate were on the rise leading to a spurt in the domestic production of polyurethane. The global market for these chemicals were controlled by a cartel of American giants including Union Carbide and Bayer Pharma.

The domestic production of these chemicals was understood to have been miniscule. "Only a petrochemical firm in the country is learnt to have producing these chemicals", the source said. Following this, the board has decided to appoint SN Chakravarthy to make a detailed report on the issue, the source added.

He said the board is at present not equipped with facts and figures to come out against the alleged dumping. "We have given the mandate of furnishing a detail report to Chakravarthy. We could only take a final decision on the matter after the report is ready", the source added.

He said following the large scale dumping of these chemicals the domesticproduction of polyurethane has leap frogged over the years leading to a sharp fall in latex prices.

Following the heavy use of the chemical substitute, the consumption of centrifugal latex by domestic latex-foam and tyre manufacturers has declined from 57,995 tonnes in 1995-96 to 52,250 tonnes in 1997-98. This has also led to a crash in latex prices over the years. The price of the centrifugal latex has declined from a peak of Rs 6710 per 100 dry rubber cintenet (DRC) in July 1996 to Rs 4985 per 100 DRC in April 1998.

Flexible Polyurethane is a chemical substitute for rubber latex widely used by a variety of industries including foam, thread and low speed tyre manufacturers.