Impose anti-dumping duty on polyester spun yarn, Finance Minister urged

Ludhiana, January 29

Rajya Sabha MP Sanjeev Arora has drawn the attention of Union Finance Minister Nirmala Sitharaman towards the working and survival of spinning mills in the country, especially Punjab.

Arora urged the FM to impose anti-dumping duty on polyester spun yarn (PSY) originating in or imported from the Association of Southeast Asian Nations (ASEAN) under the Free Trade Agreement (FTA).

Import rises by 943% in 5 yrs

It is the cause for concern because the yarn import has increased by 943 per cent during the past five years. Import from Vietnam alone has increased by 88 times. — Sanjeev Arora, MP, Rajya Sabha

In a letter to the FM, the MP said he had made an appeal to impose the duty on the import of the PSY as this would provide a level-playing field to manufacturers.

He apprised the FM that domestic manufacturers were liable to pay import duty of 5.5 per cent on man-made fibre, which makes them uncompetitive against the imported product. “It is concerning because the PSY import has increased by 943 per cent during the past five years and import from Vietnam alone has increased by 88 times,” he said.

The MP wrote that in August 2021, the Directorate General of Trade Remedies (DGTR) had recommended that the duty be imposed on the PSY originating in or from Indonesia, Vietnam and China.

However, an official communication from the Finance Ministry on January 8, 2022, stated, “The Centre, after considering the final findings of the designated authority, has decided not to accept the recommendations”.

Arora apprised the FM that the textile industry contributes to 40 per cent of the country’s demand in the shape of man-made fibres and employs more than 6.5 lakh workers.

He stated that the government’s decision of not imposing definitive anti-dumping duty on imports of the PSY had cast a shadow on the domestic weaving sector, which was mainly dependent on various types of synthetic yarns.

“Another consideration, which can help the textile industry is to make import of man-made fibre free of import duty,” he suggested.

On August 5 last year, Arora had raised questions about the duty on import of the PSY in Rajya Sabha.

“I hope the FM will seriously consider the matter in the larger interest of spinning mills,” said Arora.