Govt rejects anti-dumping duties on MMF from China
Dealing a major blow to the man-made fabric (MMF) industry, Textile commissioner Dr Kavita Gupta has rejected their claims that the powerloom sector in Surat was losing business badly due to under-voiced import of synthetic fibres from China.
“Chinese fabric is not a problem, there must be other factors as well,” Dr Gupta told reporters in Surat on the sidelines of the inauguration of the Textile week organized by the Southern Gujarat Chamber of Commerce and Industry (SGCCI).
In response to what action government had taken on the application of domestic MMF manufacturers seeking anti-dumping duty on Chinese synthetic fabrics, she said the textile ministry had gathered all the import data from the customs and other agencies in June and found that the extent of impact due to import of Chinese fabric in the country is just 3 per cent and for Surat it is a meager 5 per cent.
"I request the industry stakeholders and associations to submit substantial data regarding the reason for the closure of so many powerloom units in the state,” said Dr Gupta expressing concern over the developments in Surat, which has the country's largest man-made fabric industry has upgraded machines in most powerlooms.
Earlier, while inaugurating the week-long business show, she said Surat has been identified for development as a mega cluster and most likely IL&FS which has been project consultant for major textile sector projects such as Tripura and in Tirupur, would be chosen for Surat too.
"We are in the process of finalizing an agency for developing a mega cluster project. Surat is among the MMF mega cluster that we are thinking about. In all probabilities, we are going to finalize IL&FS for the cluster development project," Dr Gupta said.
Meanwhile, the SGCCI has demanded that the embroidery and zari sectors in Surat be included in the recently announced Amended Technology Upgradation Fund Scheme (A-TUFS) of the Textiles Ministry.
In a memorandum to Textile Commissioner, the industry body said at present only the embroidery machines that are used in the readymade garment units qualify for subsidy in A-TUF, and there is no mention of the Zari units the A-TUF scheme at all.
A cluster like Surat has around 1.50 lakh embroidery units in the decentralized and unorganized sector. However, each process in garments manufacturing is carried out by distinctly by different units. Despite of this the embroidery sector has been excluded from getting the benefits of subsidy under A-TUF, the industry organization said.
On the other hand, cops winder, considered as an import machinery in weaving preparatory is excluded from the machinery list under A-TUFs, it added. (SH)
Fibre2Fashion News Desk – India