Surat Powerloom Weavers Rejoice as Anti-Dumping Duty on Nylon Yarn Stays Pending

Surat : The decision to delay imposing an anti-dumping duty on nylon yarn has brought relief to powerloom weavers in Surat. The announcement was made following a meeting chaired by Union Textile Minister Giriraj Singh in Delhi on Friday. The meeting aimed to discuss whether anti-dumping duty, BIS certification, or basic customs duty should be levied on nylon yarn.

The meeting, held at Udyog Bhawan in Delhi, was prompted by a petition from nylon spinners Century Enka and Orilon Private Limited. The petitioners demanded the imposition of an anti-dumping duty, citing significant losses due to cheap imported nylon yarn flooding the Indian market. Representatives from eight to ten nylon spinning companies participated. There were powerloom weaving industry leaders and members of the Tirupur Association present in the discussions.

Powerloom industry leaders, including Mayur Golwala, Ashish Gujarati, and Vimal Bekawala, strongly opposed the petition. They argued that the nylon spinners’ claims of financial distress.  And the imposing additional duties would harm the weaving industry. Golwala highlighted that the Ministry of Textiles had previously advised against anti-dumping duties in 2020. He noted that local nylon yarn production has steadily increased in recent years, matching the growth in imports.

Industry representatives stressed the challenges faced by weavers due to the limited availability of high-quality local nylon yarn. Many weaving units in Surat have upgraded to high-speed machines with capacities of 300 to 1,200 rpm, which require superior yarn quality. Currently, domestic nylon spinners struggle to meet this demand, forcing weavers to rely on imported nylon yarn to maintain operations.

Ashish Gujarati, former president of the Southern Gujarat Chamber of Commerce and Industry (SGCCI), shared the potential impact of import restrictions. Surat’s textile industry consumes 8,000-10,000 tonnes of nylon FDY yarn monthly, supporting approximately 80,000 weaving machines and employing over 1 lakh workers. A ban on imported nylon yarn could lead to machine shutdowns, rendering them scrap and causing massive unemployment.

Weaver leaders also refuted claims that imported yarn caused financial distress to companies like Praful Overseas Private Limited, which recently became a non-performing asset (NPA). They pointed out that multiple factors contribute to an NPA status and rejected the notion that imported yarn is to blame. Instead, they argued that imposing duties would only increase profits for spinners at the expense of weavers and the broader textile industry.

By delaying the decision on anti-dumping duties, the government has offered temporary relief to Surat’s powerloom weavers. The move is seen as a crucial step toward sustaining the MMF textile hub, preserving jobs, and supporting the industry’s growth. The outcome underscores the need for a balanced approach that considers both the interests of spinners and the operational challenges faced by weavers.