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Textile Industry's Struggle Against Anti-Dumping Duties on Imported VFY Intensifies
Textile Industry's Struggle Against Anti-Dumping Duties on Imported VFY Intensifies

Textile Industry's Struggle Against Anti-Dumping Duties on Imported VFY Intensifies

  • 30-Oct-2023 6:28 PM
  • Journalist: Shiba Teramoto

The country's largest power loom weaving industry is gearing up for a collective fight against the Directorate General of Trade and Remedies (DGTR) regarding imposing anti-dumping duties on imported Viscose Filament Yarn (VFY). This unanimous decision has united various prominent associations, such as the Federation of Gujarat Weavers Welfare Association (FOGWA), Surat Autolooms Weavers Association, Surat Viscose Weavers Association, Surat Art Silk Cloth Manufacturers Association (SASCMA), Sachin Industrial Co. Op. Society Ltd., Surat Textile Club-Association, Jolwa Weavers Association, and The Udhana Group Weavers Producers Co-Op. Society, all expressing strong opposition to the recent order issued by the DGTR.

The textile industry experienced a significant improvement when the anti-dumping duty on VFY was lifted in the 2017-18 fiscal year; inspired by Prime Minister Narendra Modi's Digital India initiative, power loom weavers have upgraded their facilities with advanced technology and high-speed machinery. However, the reintroduction of anti-dumping duties on VFY puts their access to premium imported yarn at risk, potentially forcing weavers to rely on domestically produced, lower-quality yarn.

The president of the Federation of Gujarat Weavers Welfare Association (FOGWA) said that the Imported yarn is more expensive, but it yields better results. If local manufacturers could meet the weavers' quality standards, they would not need to resort to imported yarn. Unfortunately, local spinners haven't enhanced the quality of their yarn, and they are now requesting anti-dumping duties to eliminate competition from imported yarn.

Table: Imports data for the commodity (HS Code: 54033100)

 

S.No.

Country / Region

Aug 2022 (R)

Aug 2023 (F)

%Growth

Apr-Aug 2022 (R)

Apr-Aug 2023 (F)

%Growth

1.

AUSTRIA

1.14

 

 

1.14

0.05

-95.42

2.

BULGARIA

 

 

 

19.46

 

 

3.

CHINA P RP

4,473.14

6,344.17

41.83

22,940.05

18,668.44

-18.62

4.

GERMANY

7.15

79.57

1,013.39

44.07

105.27

138.86

5.

ITALY

 

1.09

 

6.81

11.80

73.36

6.

TAIWAN

 

 

 

 

15.40

 

 

Total

4,481.42

6,424.83

43.37

23,011.52

18,800.97

-18.30

 

Source: Ministry of Commerce

It's not the initial instance where domestic yarn manufacturing companies have requested the DGTR to impose anti-dumping duties. A couple of years ago, when this matter first surfaced, a total of eight significant weavers' associations lodged written objections. Despite the robust opposition from these weavers' groups, DGTR decided to impose anti-dumping duties. Power loom weavers perceive this ruling as showing a clear preference for yarn manufacturing firms, as it appears to have disregarded the concerns and perspectives of the weavers.

Therefore, the country's largest power loom weaving industry is uniting against the Directorate General of Trade and Remedies (DGTR) over anti-dumping duties on Viscose Filament Yarn (VFY) imported from China PR. Due to this, industry leaders fear that more than 50,000 weavers could be forced to cease operations, leaving thousands of migrant workers jobless in the city.

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