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

Remove anti-dumping on VSF, appeals NCTC

Jan 11, 2021
Remove anti-dumping on VSF, appeals NCTC

The National Committee on Textiles & Clothing (NCTC) appealed the Prime Minister to remove Anti-Dumping Duty (ADD) on Viscose Staple Fibre (VSF) and address the VSF spun yarn availability and price issues to prevent job losses and stoppage of production across the VSF textile value chain.  

The textile industry has been facing stagnation since many years mainly due to the lack of availability of the basic raw materials of man-made fibre / filament yarn at internationally competitive prices. Taking a serious view of the high price of VSF in India, the captains of the various segments of VSF value chain, viz Apparel Export Promotion Council (AEPC), Confederation of Indian Textile Industry (CITI), The Clothing Manufacturers Association of India (CMAI), Indian Spinners Association (ISA) and Powerloom Development Export Promotion Council (PDEXCIL) under the common platform of NCTC have unanimously submitted a joint representation to the Prime Minister of India for the removal of Anti-Dumping Duty on import of VSF to achieve global competitiveness and accomplish the target of US$ 350 billion by 2025 set by the ministry of textiles for the textiles and apparel sector. They have also requested the union minister of textiles and secretary, textiles to support the textile industry in this regard.  

NCTC observed that “owing to the growing demand for Viscose Staple Fibre and its blended textiles and clothing market opportunities, the demand for Viscose Staple Fibre has increased steeply not only in India, but also across the globe.  As the imported yarn price was cheaper due to high anti-dumping duty prevailing on the domestic viscose staple fibre, the weaving and knitting sectors have been importing large volume of VSF spun yarn.  The import of VSF spun yarn has increased from 2 million kgs during 2016-17 to 56 million kgs during 2019-20”.  

NCTC also highlighted in the appeal that “in the post-COVID market scenario, VSF price has increased from US $ 1.15 to US$ 1.50 per kg during the last few months.  As the domestic VSF price was expensive due to anti-dumping duty (upto US$ 0.512 per kg), the demand for domestic spun yarn got reduced and therefore, the availability and price are affecting the entire VSF value chain especially the knitted and powerloom sectors.  All the major VSF Powerloom clusters in the states like Tamil Nadu, Maharashtra, Gujarat, etc are agitating against the steep increase in VSF prices”. 

In view of the above, NCTC has appealed the Prime Minister to remove the anti-dumping duty levied on Viscose Staple Fibre on a war footing to address the burning issue, grab the emerging market opportunities and to protect the livelihoods of several lakhs of workers employed in the VSF textile value chain. This is the second appeal to the Prime Minister, in this regard. 

At the same time, NCTC highly appreciates that the union minister of textiles has recommended the government for supporting the textile industry in removing Anti-Dumping Duty (ADD) on the import of Viscose Staple Fibre (VSF) as it ensures availability of raw materials at economical prices to the spinning industry.  The VSF value chain stakeholders also welcome the fact that the union minister and the ministry of textiles support the policy of having availability of raw materials at economical and cheaper prices so that value added products are manufactured and employment is generated at large scale. 

The VSF Value Chain Industry players concluded by saying that removing ADD on VSF will make the domestic VSF prices aligned with the global VSF prices making the entire Indian VSF textile value chain globally competitive and boost production and exports of these products.

Enquiry