Embroidery sector fear 50% increase in production cost as Govt. proposes anti-dumping duty on yarn.

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Surat : The country’s largest embroidery sector in the textile hub of Surat has raised serious concerns with the Union Commerce Ministry proposing to impose anti-dumping duty on imported viscose yarn.

Embroidery unit owners claimed that the move of imposing anti-dumping duty on imported viscose yarn would increase the cost of production by 50%.

The Director General of Trade Remedies (DGTR) has recommended the imposition of anti-dumping duty on viscose filament yarn (60 Deniers) imported by spinners from China. This has led to widespread concerns among the powerloom weavers, embroidery unit owners and sizing units in the city.

Textile machinery in the embroidery sector has been upgraded in the last few years. This machinery is compatible of manufacturing good quality of embroidery as the yarn is imported from China. The local viscose filament yarn manufactured in Surat and other parts of the country is of poor quality, not suitable for the long life of the fabrics.

In addition, the use of yarn manufactured domestically increases the production cost of embroidery manufacturers. Therefore, embroidery manufacturers prefer to use yarn imported from abroad, including China.

Hitesh Bhikhadia, president of Tejas (Textile Embroidery Job Workers Association) told TBT, “If local yarn is used, there is a danger of a 60 per cent increase in production cost. Moreover,  if duty is levied on imported viscose, it would not be a surprise if the cost goes up by 100 per cent”

There are fears that the imposition of anti-duty on imported viscose yarn will also increase the difficulty of sizing beam fillers.

Weaver Nirav Sabhaya said that a separate charge is levied by the sizing unit for mounting the local yarn on the beam.

“This is because the local yarn breaks when mounted on the beam.So, they have to pay more for chemicals. If the quality of imported yarn is good, the sizing units can easily beam. More yarn is wasted on local yarn beams compared to imported yarn. The warp of the beam breaks despite care.”