SURAT: The Union finance ministry's proposal to impose anti-dumping duty on imported Full Draw Yarn (FDY) from China, Thailand, Taiwan and Vietnam has been opposed by weavers and polyester yarn importers in city's textile industry.

In a representation to textile commissioner (Mumbai) A B Joshi during his two-day visit to the city from Thursday, the importers and leaders of powerloom industry stated the anti-dumping duty on FDY would exploit the domestic yarn market and help domestic yarn spinners to monopolise the trade.

Industry sources said the finance ministry is yet to implement the anti-dumping duty on FDY. The ministry has given a time period of 40 days to the parties concerned to forward their suggestions and objections on the issue.

Sources said FDY imported from China, Thailand, Taiwan and Vietnam is cheaper. The weavers use the imported FDY to reduce their cost of production.

Textile commissioner Joshi told TOI, "There is a huge demand of FDY in Surat's textile industry. The weavers in the city fear the proposed anti-dumping duty would further exploit the local market. Being the government agency, I will definitely represent the issue."

Following the announcement on FDY, prices of filament yarn in the local market have gone up from Rs 10 to Rs 25 per kg. "The domestic yarn manufacturers will exploit the local market by controlling the prices of yarn on day-to-day basis. The anti-dumping duty on FDY is not in the interest of the industry," said a leading yarn dealer Rajesh Surana.

Chairman of Federation of Indian Art Silk Weaving Industry (FIASWI) Arun Jariwala said, "The finance ministry should do a re-think on imposing anti dumping duty on FDY."