Powerloom weavers warn Central Government on huge job losses, if anti-subsidy duty is imposed on viscose yarn.

Surat : Nearly 13 lakh workers in Surat and other textile manufacturing clusters across the country may lose their jobs following the proposed move of the Central Government to impose anti-subsidy duty on the viscose filament yarn (VFY) imported from Asian countries including China.

Industry sources said the Directorate General of Trade Remedies (DGTR) has started the anti-subsidy investigation on the VFY from July 20, 2020. At present, the case is under investigation stage and all the stakeholders including the domestic yarn manufacturers and consumer industry have filed their responses with the DGTR.

According to the industry leaders, the VFY falls under the category of ‘Key Raw Material’, and therefore any increase in raw material prices on account of any additional duty will have a cascading effect on the overall competitiveness of the textile sector.

Powerloom weavers in Surat have claimed the industry is going to be largely affected in terms of the employment due to the anti-subsidy duty on VFY. The VFY is consumed by more than 1 lakh powerlooms, majority in Surat and other parts of the country, including Maharashtra. Also, over 1 lakh tapela dyeing and handwork embroidery units are consuming VFY for the finished fabrics.

The industry leaders on Saturday submitted a memorandum to the newly appointed Union Textile Minister, Piyush Goyal and Minister of State for Textiles and Railways, Darshana Jardosh. A letter has been sent to Union Finance Minister, Nirmala Sitharaman urging her not to impose anti-subsidy duty on VFY.

Nirav Sabhaya, a powerloom weaver manufacturing fabric using VFY told TBT, “The domestic manufacturers of VFY are manufacturing inferior quality yarn compared to the yarn being imported in the country. At present, the globally renowned brands such as Zara, Walmart etc. are using Indian fabrics and garments in their merchandise, manufactured by the Indian downstream textile entrepreneurs”

 

Mayur Golwala, leader of Surat’s man-made fabric (MMF) sector told TBT, “Three yarn manufacturing companies namely Century Rayon, Indian Rayon and Keshoram, which are the parent industrial group of Aditya Birla group, controls nearly 80% of the domestic manufacturing of VFY. Therefore, the risk of price rigging and abuse of dominant position cannot be ruled out with the imposition of anti-subsidy duty on VFY”

According to Golwala, the powerloom industry has requested the Central Government to stop the anti-subsidy investigation on VFY and protect the future of 13 lakh workers and the powerloom weaving sector.