Surat: Manufacturers of nylon fabrics in the country’s largest man-made fibre (MMF) sector in the city have opposed the recommendation by the commerce ministry’s investigation arm, Directorate General of Trade Remedies (DGAD), for imposing antidumping duty up to $719 per tonne on import of nylon filament yarn from European Union and Vietnam.
The nylon fabric manufacturers feel that the increase in anti-dumping duty on nylon filament yarn will allow indigenous yarn manufacturers to monopolize prices of nylon yarn, thereby creating problems for nylon fabric makers in Surat and other parts of the country.
The unprecedented increase in yarn prices has cast a dark shadow on the city’s weaving sector, which is totally dependent on various types of synthetic yarns. City’s textile industry, which contributes to nation’s 40 per cent of the man-made fibre demand, has more than 6.5 lakh powerloom machines weaving about 3 crore metres of cloth per day with the annual consumption of 6 lakh metric tonnes of different types of yarns and fibres.
Market sources said yarns and fibres, including nylon filament yarn (NFY), polyester filament yarn (PFY), polyester yarn (POY), viscose filament yarn (VFY) etc. manufactured in Vietnam and EU is 20 per cent cheaper than the ones made by domestic players. Following imposition of anti-dumping duty, the domestic manufacturers of yarns and fibres will get a free hand to increase the prices, especially when the demand increases from local market.
“The domestic spinners are taking advantage of anti-dumping duty, as they know that import of yarn from Vietnam, China and other countries has become a costly affair. They want to earn as much profit as possible from the weavers,” said a yarn dealer Mayur Golwala, leader of powerloom weaving industry, said, “We urge the central government not to accept the recommendation of DGAD for anti-dumping duty on nylon yarn. The government should not think of only five to six nylon yarn manufacturers in the country, but thousands of weavers and workers who are attached with the industry.”