Contact us on +022 2419 3000 or indiantextilejournal.com.

NITMA demands ADD on imported polyester spun yarn

Nov 19, 2021
NITMA demands ADD on imported polyester spun yarn

Ludhiana

Northern India Textile Mills' Association (NITMA) has urged the Union Textile Ministry to provide a level playing field for the domestic Polyester Spun Yarn (PYS) manufacturers as the PSY imports is at zero duty under ASEAN FTA from Indonesia & Vietnam, whereas polyester staple fibre is not included in the FTA which is cleared at full duty rate of 5%.

Sanjay Garg, President, NITMA, along with a small delegation met with the Textile Secretary on November 8, 2021 and requested him to levy ADD on PSY at the rate of 5% due to the fact that polyester staple fibre is not included in the FTA which is cleared at full duty rate of 5% whereas PSY imports are cleared at zero duty under ASEAN FTA from Indonesia and Vietnam and sought level playing field for the domestic industry. 

He stated that in the presence of this anomaly, domestic mills have no chance to compete with the imported goods. Imports are doubling every year since 2015 from 486 tonnes per month to 5,109 tonnes per month in 2020/2021. Current market share of imports has reached 25% of the total domestic consumption. In a matter of 1-2 years, it will significantly & thereafter completely wipe out the domestic polyester spinning industry.

Sanjay Garg opined that alternatively, removal of basic custom duty on polyester staple fibre or its inclusion in the ASEAN FTA would also give a level playing field to the domestic industry. As both these options would take a long time to materialize, he appealed to the Textile Secretary that the anti-dumping be imposed till such time the FTA is modified to include polyester staple fibre or till such time that the basic custom duty on polyester staple fibre is removed.

It is worth mentioning here that the Directorate General of Trade Remedies, after 18 months of elaborate investigations, has already recommended the imposition of duty on the same.

Sanjay Garg advocated that domestic manufacturers do not require any undue protection or advantage over the imports but only thing that is needed is a level playing field. In order to protect the domestic industry and to create a level playing field , the rate of duty on input raw material and finished goods need to be the same ,which is currently not the case hence early imposition of the anti dumping duty is required. This move is  necessary to not only revive the domestic spun yarn industry but also to save and protect the domestic industry thereby encouraging “ Make  In India “ .