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Surat embroidery industry up in arms against anti-dumping duty
07
Apr '09
Surat has built a formidable reputation for itself for having the largest base of embroidery machines in the country; 60,000 in all. But the recent decision of the government to impose anti-dumping duty on imported viscose yarn will bring the sector to a shuddering halt.

On a petition from Indian Rayon, the manufacturer of Viscose yarn in India, the government after preliminary investigation decided to impose anti-dumping duty on import of the said yarn from China, Thailand and other countries.

This has raised the hackles of the embroidery sector which is dependant on viscose yarn which is used as the main yarn for embroidery. They allege that prices of domestic producers will increase which in turn will amplify their cost of doing embroidery work.

Experts have ridiculed the government decision by saying that the country does not have the capacity to fulfill the demand of the sector. Against a demand of 2,400 tons per month the supply by Indian viscose producers is only 1,100 tons per month.

This situation they aver will lead to a tremendous shortage of the viscose yarn and will ultimately lead to a big rise in prices which will be detrimental to the interests of the 60,000 embroidery machines installed in the city.

Fibre2fashion News Desk - India

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