Anti-dumping duty on yarn to effect micro hosiery business
Textile industry, which is already battling low business for over a year now, has further been burdened by imposition of an anti-dumping duty against importing polyester yarns from China or Thailand.punjab Updated: Oct 25, 2015 20:59 IST
Textile industry, which is already battling low business for over a year now, has further been burdened by imposition of an anti-dumping duty against importing polyester yarns from China or Thailand.
Although the move by the Centre is set to provide respite from the unhealthy competition, which is often created by procurement of yarn in bulk from outside the country, the prices of clothes would see a rise, while the manufacturing units operating at micro and small scale would witness a low business in the coming time, expressed hosiery manufacturers in Ludhiana.
Sudarshan Jain, president of the Knitwear Apparel and Manufacturers Association (KAMAL), said, “Prices of the hosiery products will see a rise but at the same time the move by the government will discourage the unhealthy competition. The move apparently seems to be guided by the ruling government’s make in India plan where it encourages the purchase and selling of finished goods and raw material prepared indigenously.”
“Thousands of manufacturers who were earlier procuring yarn in bulk from China and Thailand will now be forced to buy it in Indian market on expensive rates, the effect of which subsequently be transferred to the consumers,” Jain said.
Although the dumping of yarn by outsiders would be curtailed to a great extent and resultantly unhealthy competition shall also be discouraged, thousands of manufacturing units operating in Ludhiana would directly be bearing the brunt of the decision as it would escalate their input or production cost, added Jain.
The manufacturers here have already witnessed a low business for more than five years now. Neither any major player nor new players in hosiery industry from outside have shown keen interest in investing here.
The anti-dumping duty will be effective for a period of five years beginning October 21, 2015.