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India removes ADD on imported viscose staple fibre

Aug 17, 2021
India removes ADD on imported viscose staple fibre

The Government of India has withdrawn ADD on the viscose staple fibre that originates in or is imported from China or Indonesia.

Viscose is used by the textile and clothing industry to make apparel. As the fashion trends are changing, there has been a growth in the demand for comfortable and loungewear. Children and women want to wear clothes that are made up of 100% viscose or viscose blend. These products are easy to maintain and the consumption of the same has increased tremendously in the last five years. The consumption of viscose has experienced a CAGR of 11%.

The government has identified some 40 products for the Product Linked Incentive Scheme, out of which 18 are viscose blended. It is expected as the demand for viscose is going to increase; the consumption will enjoy at least 11% growth every year. Viscose fibre and yarn have 5% customs duty and anti-dumping duty.  Whatever viscose is imported from China and Indonesia is subjected to ADD in addition to the Basic Customs Duty of 5%. The ADD ranges from $0.103 to 0.512 per kg. As per the data, the import of viscose blended garments from Bangladesh, China, Sri Lanka, and Vietnam increased to 175% in 2019-2020. Also, the price of viscose in India is higher as compared to other global textile markets.

If ADD is removed from viscose fibre, then it will be available in India at competitive prices. This will further benefit downstream sectors like weaving and garments. The textile units in India will be able to export products made with viscose at good competitive prices in the international markets.

Source – The Hindu

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