Surat: Opposition to Proposal for Anti-Dumping Duty on Viscose Filament Yarn Intensifies
Surat. The Viscose Weavers Industry in Surat has strongly opposed the proposal to impose an anti-dumping duty on viscose filament yarn.
The Viscose Weavers Association presented a detailed presentation to the Ministry of Textiles and the Textile Committee in Mumbai, raising serious questions about the demands of yarn spinners. The association stated that the spinners demanding the anti-dumping duty on viscose filament yarn over 75 denier are still producing based on the nearly 60-year-old PSY technology and machinery. According to the association, about 40 percent of the yarn produced by spinners is of low quality, making the demand for anti-dumping duty to protect production based on old technology unreasonable.
The Weavers Association also questioned why spinners themselves admit to making profits on yarn below 75 denier while incurring losses on yarn above 75 denier. This raises several questions about seeking protection for loss-making yarn instead of increasing production of profitable yarn. The association noted that currently, only about 6,000 tons of yarn in the category below 75 denier is produced in the country, while around 40,000 tons of yarn is imported.
Despite this, no serious efforts have been made to increase domestic production. The association has also raised questions about the investigation process of the Directorate General of Trade Remedies (DGTR). They alleged that the DGTR team visited only spinning units without any technical experts, while weaving units, which would be most affected by this proposal, were not inspected.
In such a situation, doubts arise about the impartiality of the report prepared regarding the anti-dumping duty. The Weavers Association warned that if the anti-dumping duty is imposed on viscose filament yarn, it will have a serious impact on Surat's weaving industry, which has a turnover of about 10,000 crore rupees. Additionally, it could threaten the livelihoods of nearly 1,000 MSME entrepreneurs and about 450,000 people.
The association stated that over the past seven years, weavers in Surat have made significant investments in modern machinery such as airjet, rapier, and rapier jacquard by taking bank loans, mortgaging assets, and raising funds at high interest rates. If imported yarn becomes expensive, the weaving industry will become economically weak. The association also reminded that from 2007 to 2017, an anti-dumping duty was in place on viscose filament yarn.
During that period, spinners made good profits, yet they did not make sufficient investments to upgrade their 50 to 60-year-old technology and machinery. The Weavers Association has demanded that the central government reconsider the proposal to impose an anti-dumping duty, keeping in mind the interests of Surat's weaving industry, the MSME sector, and millions of workers.
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