Surat : Textile Industry Unites to Challenge Anti-Dumping Duty on Viscose Filament Yarn (VFY)

Surat : The country’s largest powerloom weaving industry is preparing for a collective battle against the Directorate General of Trade and Remedies (DGTR) over the imposition of anti-dumping duty on imported viscose filament yarn (VFY).

This unanimous decision has brought together several prominent associations, including the Federation of Gujarat Weavers Welfare Association (FOGWA), Surat Autolooms Weavers Association, Surat Viscose Weavers Association, Surat Art Silk Cloth Manufacturers Association (SASCMA), Sachin Industrial Co. Op. Society Ltd., Surat Textile Club-Association, Jolwa Weavers Association, and The Udhana Group Weavers Producers Co-Op. Society, all voicing strong opposition to the recent DGTR order.

The powerloom industry had experienced a significant boost when anti-dumping duty on VFY was removed during the year 2017-18. With support from Prime Minister Narendra Modi’s Digital India campaign, powerloom weavers upgraded their units with state-of-the-art technology and high-speed machines. The revival of anti-dumping duties on VFY, however, threatens to hinder access to A-Grade imported yarn, potentially forcing weavers to rely on lower-quality yarn produced by local spinners.

Mayur Golwala, the secretary of Sachin Industrial Co. Op Society Ltd., expressed concerns, stating, “Imported yarn is more expensive than the market price, but due to its exceptional performance in high-speed machines, weavers are compelled to invest in pricier yarn. The weavers argue that if local yarn manufacturing companies could produce high-quality yarn, they would willingly opt for local products. Instead, they find that the yarn spinners are targeting them by petitioning the DGTR to impose anti-dumping duty on the imported yarn they currently depend on.”

Ashok Jirawala, president of FOGWA, further emphasized the weavers’ perspective, saying, “The imported yarn is more expensive, but it delivers superior results. Weavers wouldn’t turn to imported yarn if local manufacturers could meet their quality standards. Unfortunately, local spinners have failed to improve the quality of their yarn, and they are now seeking anti-dumping duties to eliminate the competition posed by imported yarn.”

This is not the first time that indigenous yarn manufacturing companies have petitioned the DGTR for the imposition of anti-dumping duty. Two years ago, when this issue arose, as many as eight major weavers’ associations submitted written protests. Despite the strong opposition from weavers’ organizations, DGTR went ahead with the anti-dumping duty decision.

Powerloom weavers believe that this judgment reflects a bias in favor of yarn manufacturing companies, as it seemingly disregarded the concerns and viewpoints of the weavers.