The National Committee on Textiles and Clothing (NCTC) has appealed to the Union Government to remove anti dumping duty (ADD) on viscose fibre.
In a memorandum to the government, the Committee said because of the growing market opportunities worldwide for viscose blended textiles and clothing, the demand for viscose fibre has increased steeply not only in India, but also across the globe. As the imported price of viscose yarn was cheaper due to high anti-dumping duty prevailing on the domestic viscose staple fibre, the weaving and knitting sectors were importing large volume of VSF spun yarn. The import of VSF spun yarn increased from 2 million kg in 2016-2017 to 56 million kg in 2019-2020.
In the post-Covid market scenario, viscose fibre price has increased from $ 1.15 to $ 1.50 a kg. As the domestic viscose fibre price was expensive due to anti-dumping duty (upto US$ 0.512 per kg), the demand for domestic spun yarn also reduced. Thus, the availability and price are affecting the entire viscose textile value chain, especially the knitted and powerloom sectors. Weavers in all the major viscose powerloom clusters in Tamil Nadu, Maharashtra, and Gujarat are agitating against the steep increase in viscose fibre prices.
Hence, the Union government should remove the anti-dumping duty on visocse fibre. The Textile Ministry has recommended removal of the duty on the fibre as it will ensure availability of raw material at affordable prices.
Removal of the anti-dumping duty will ensure that Indian viscose prices are on a par with the global prices and the entire value chain is globally competitive.
Source: The Hindu, India Monday, 11 January 2021