In a breather for the domestic yarn manufacturers, especially those who are into polyester spun yarn (PSY), the Union minister for industry and commerce has accepted their demand to impose anti-dumping duty (ADD) on the import of PSY from China, Indonesia and Vietnam. The import had increased by 943% during the past five years.

One of the biggest bodies of yarn manufacturers, Northern India Textile Mills’ Association (NITMA), had been taking up this demand at different levels, claiming that the uncontrolled imports of PSY had eaten up a significant share of domestic markets and was hurting the local industry. Now all eyes are on the ministry of finance as a formal notification is awaited to confirm imposition of ADD.

Sanjay Garg, president of NITMA, said, “We are thankful to minister for commerce and industry Piyush Goyal and the Directorate General of Trade Remedies (DGTR) for their recommendation to impose ADD on PSY originating in or exported from China, Indonesia and Vietnam. There has been a huge surge in the import of this yarn post-GST, as with the removal of excise and other duties the polyester yarn is being cleared at zero duty. 

Imports of virgin PSY have increased by 943% in five years and in a shocking trend, imports from Vietnam alone have increased by 88 times. Imports for this yarn in 2020-21 are 60,810 tonnes, out of the total domestic consumption of 264,000 tonnes, which means that imports have gobbled up 23% of the total market share and this trend is increasing at a great speed.”

Asserting that now the domestic yarn manufacturers would be able to survive, Garg added, “We urge the minister for finance to notify the ADD at the earliest, as any delay will push the domestic industry backwards, jeopardising jobs of many.”

According to yarn manufacturer Siddharth Khanna, “NITMA members made several representations to all the authorities about the increasing import of the PSY and its dangers. Besides this, many other producers of PSY throughout the country undertook the herculean task of collecting data so that facts could be presented before the authorities. Finally, the DGTR, in its final findings, agreed to the concerns flagged by the NITMA.”

Association’s vice-president Aman Gupta said, “Due to increase in the imports of PSY, the synthetic yarn segment of India’s textile sector was devastated, as a result most of the units had become NPAs and the rest were on the verge of it. Only a handful of PSY manufacturers in India are doing well and majority are in dire straits. The recommendation by the Union minister has come as a big relief for us.”

Source: Times of India