Indian Weavers Demand Abolition of Anti-dumping Duty on Imported Yarn

With the prices of polyester yarn - main raw material for the India's biggest man-made fibre industry - witnessing a sharp increase in the domestic market, the powerloom weavers have demanded that the Central government abolish anti-dumping duty on the imported yarn in order to help the ailing powerloom sector.

Surat's textile industry, which contributes to nation's 40 per cent of the man-made fibre demand, has more than 6.5 lakh powerloom machines weaving about 2.5 crore metres of cloth per day.

In the past three months, yarn manufacturers have increased the prices of nylon and polyester yarns by Rs 30 to Rs 40 per kilogram taking the end user price between Rs 130 and Rs 140 per kilogram.

The increase in the prices of yarn is playing havoc with the weaving and the embroidery industries with most of the units seriously contemplating closure, which will have an adverse impact on the ancillary industry downstream and loss of job.

The biggest problem with the domestic synthetic yarn manufacturers is that couple of them currently monopolise the fibre market and prefer to export, according to some weavers.

"The weavers cannot afford to purchase yarn at such high prices. Moreover, there is little or no movement in the grey fabric prices manufactured by the poweloom weavers," said Ashok Jirawala, president of Federation of Gujarat Weavers Association (FOGWA).

Jirawala said the abolition of import duty on the imported yarn is expected to provide a level playing field to the domestic weavers. The prices of yarn could be controlled as the fibre and yarn manufacturers will face competition from China and other yarn manufacturing countries.

"If the government abolishes anti-dumping duty on yarn then the powerloom weavers in the domestic market would get yarn at Rs 90 per kilogram," said Jirawala.

Market sources said the National Fibre Policy (NFP) has stressed on increase in the production and consumption of man-made fibre, yarn and fabrics. But the important objective of the NFP will not be met, if the current situation of price rise is not contained immediately.

"An application has already been filed with the central government over the abolition of anti-dumping duty on the import of nylon and polyester filament yarn (PFY). The hearing is going on over anti-dumping duty on nylon yarn and the hearing on PFY will begin soon. We hope the government would take a favourable decision," said Arun Jariwala, chairman, Federation of Indian Art Silk Weaving Industry (FIASWI).