To overcome the issue of level playing field for Indian manmade fibre industry by abolishing anti-dumping duty (ADD) on acrylic fibre for enhancing competitiveness in the value chain, Union Minister of Commerce and Industries Piyush Goyal has said that taking ADD initiative to arrest large imports is the most appropriate resort.
He also directed the officials in the Commerce Ministry & the DGFT to speed up the process and take decisions purely on merit basis so that spinning mills are saved from closure.
The ministry has also asked to obtain report from the Textile Ministry.
In a meeting with joint delegation of Ludhiana Spinners Association (LSA) and Northern India Textile Mills Association (NITMA), the minister said that providing level playing field for the manufacturing industry is important for growth. “I am of the opinion of imposing quality standards for stopping huge low-quality imports of products into India,” the minister said.
The delegation was led by Madan Mohan Vyas, President, LSA and Sanjay Garg, President, NITMA.
It is pertinent to mention here that NITMA is aggressively working in this regard and recently met Textile Secretary Ravi Capoor with the same demands.
The organised Indian acrylic fibre producer employs 3,500 persons across 3 plants, and about 60 semi-organised acrylic yarn producers employ about 35,000 persons.
A large number of units in the acrylic value chain are in the downstream value-added segment, mostly unorganised, which make sweaters, shawls and other value-added products and consist of about 7,500 units that together employ about 1 million people.
The joint delegation also highlighted a level playing field for Indian spinning mills by removing the anomaly in the ASEAN FTA agreements with Indonesia & Vietnam under which 100 per cent polyester spun yarn is being imported at zero duty into the country, leading to closure of medium & small-scale spinning mills.