Saudi polypropylene exports to India will be subject to dumping duties. India is accusing two Saudi companies, Sabic and Advanced Electronics Company, of selling their products on the Indian market cheaper than elsewhere in the world. The accusation has been refuted by the Saudi Trade Ministry.

Saudi products will be subject to an additional levy of at least 6.5 per cent in duties.

The sanction became effective after a 90-day delay was given by India to the Saudi government. "This decision is legally fragile. Petrochemichal products pricing are compliant with World Trade Organisation rules," a Saudi official told Al-Arabeya.net.

Indian petrochemical companies filed a complaint against Saudi companies in August, driving the Indian government to proceed to negotiations with Saudi counterparts.