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PSF producers firm on antidumping charge
Feb '11
The domestic producers of the polyester staple fibre (PSF) have turned down the Textile Ministry's request to withdraw the antidumping duty complaint on imports of synthetic PSF from suppliers in China and other Far East countries, which would allow the Ministry to import the fibre to meet the short supply of fibre that the domestic producers are confronting.

The PSF manufacturer's denial to withdraw the complaint that they had lodged with the National Tariff Commission (NTC) some two years back is likely to set off a demand from the side of the spinning industry for annulment of the current 6.5 percent duty on imports of synthetic fibre so that they may reasonably import the required fibres.

The overseas suppliers of the fibre who avoided contesting the “injury” complaints launched by the PSF producers from Pakistan, in view of insignificant size of the Pakistani market, were all penalized with punitive duties of up to 12.5 percent by the NTC. However, given the sizeable loss in country's cotton production for the current year coupled with a fall in domestic production of the man-made fibre, it is just not easy for anyone to justify this duty imposition on PSF imports.

But then, the situation got even worse when a leading domestic producer, Dewan Salman Fibres ceased its operations, as this further elevated the demand and supply gap by 12,000 tons per month. This caused the domestic PSF production to dwindle to around 18,000 to 20,000 tons per month as against the overall domestic demand of 30,000 tons.

The spinners are of the opinion that, the domestic manufacturers are taking undue advantage of the prevailing circumstances and the 6.5 percent duty imposition, and sold their goods to the industry at a price which was around 15 to 20 percent above the F.O.B. prices prevailing all across the region.

The spinners, during a meeting with the Textile Ministry during January, urged the government to remove the anti-dumping and the import duties on PSF imports, while bearing in mind the existing shortage of four million cotton bales in the local markets and the continuing short supply of the same.

Fibre2fashion News Desk - India

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