Ludhiana, Jan 5 : The Northern India Textile Mills’ Association has urged the government to levy the Anti-Dumping Duty on Polyester Spun Yarn on the lines of similar duty proposed for Viscose Spun Yarn coming into the country from Indonesia, Vietnam and China.
In a press statement issued on Tuesday, NITMA said that while the decision of Directorate General of Trade Remedies (DGTR) to levy the anti-dumping duty on Viscose Spun Yarn is highly appreciable, it is time for similar action on Polyester Spun Yarn where dumping has been causing considerable amount of injury to domestic manufacturers.
Spun yarns are long continuous length of interlocked fibers, suitable for use in the production of textiles, sewing, crocheting, knitting, weaving, embroidery, and rope making.
The trade data clearly brings about the change in the market structure for polyester spun yarns (PSY) where presence of imported material has risen sharply over the years.
Against imports of 5,833 tonne of PSY in 2015, the imports have jumped manifolds to 43,306 tonne in 2019 from four countries under question responsible for dumping the material in India. These countries are Indonesia, China, Vietnam, and Nepal.
Monthly average imports of Virgin Polyester Spun Yarn (under the PUC) have increased by 972 per cent from 2015 to 2020. Imports from Vietnam alone have increased by mammoth 10,512 per cent, that is, 107 times.
Average monthly imports for 2020 are 5,212 tonnes/month out of the total domestic monthly consumption of 22,000 tons/month, which means that imports enjoy 25 per cent of the total market share.
“Import numbers have been rising substantially year after year due to an extremely and unreasonably low prices offered by Indonesian and Vietnamese spinners on account of huge idle capacities created owing to their government’s incentives,” the NITMA statement said.
According to NITMA President Sanjay Garg, the rise in import quantities being dumped into India has the potential to cause an irreparable injury to domestic PSY spinning sector with the cascading effect, from closure of mills to NPAs, and eventually resulting into massive loss of employment.
Disclaimer: This story is auto-generated from IANS service.