Surat : The Directorate General of Trade Remedies (DGTR) has sent shockwaves through the powerloom weaving industry as it implements an Anti-Dumping Duty (ADD) on Viscose Rayon Filament Yarn (VFY) imported from China PR.
The decision has sparked protests from powerloom weavers who fear this move could lead to unemployment and severe difficulties in procuring essential raw materials for fabric manufacturing in the bustling textile hub of Surat.
The DGTR’s decision came after it received an application from the Association of Man-Made Fiber Industry Limited and Grasim Industries Limited. The application requested the initiation of an anti-dumping investigation into the imports of VFY originating in or exported from China PR.
The Federation of Indian Art Silk Weaving Industry (FIASWI) voiced its concerns, stating that the ADD on VFY is arbitrary and will have far-reaching consequences for the powerloom sector in Surat.
Surat is renowned as the largest center for the production of man-made fabrics, and the monthly consumption of VFY is estimated at approximately 10,000 metric tonnes (MT). Approximately half of this, around 5,000 MT, is imported from China, while the remaining portion is sourced from domestic fiber manufacturers. The quality of the VFY supplied by China is considered superior, often of A-Grade quality compared to the domestically manufactured material.
Bharat Gandhi, the Chairman of FIASWI, warned, “The ADD on VFY will have a cascading impact on the MMF industry in Surat. Fabric manufactured from VFY will become costlier, leading to increased unemployment due to the shortage of this critical raw material. The Central Government must reconsider its decision to impose ADD on this essential raw material.”
Gandhi further explained that VFY is primarily manufactured in China due to environmental pollution issues. Indian manufacturers have struggled to compete with their Chinese counterparts in terms of quality and consistency of the material.
In response to the DGTR’s decision, VFY importers are now preparing to file an appeal against the final findings on the imposition of ADD. They are determined to protect their interests and the livelihoods of those reliant on this vital industry.
Ashish Gujarati, a leader in the powerloom sector, expressed the sector’s frustration, saying, “The SGCCI and the powerloom sector have repeatedly urged the government to exclude the user industry when imposing ADD on raw materials. The implementation of ADD on VFY will only lead to substantial unemployment and an increase in the end cost of fabric production.”
