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Anti dumping duty on PTA to impact Surat textile sector
08 Aug '16
2 min read
India's decision to impose definitive anti dumping duty on purified terephthalic acid (PTA) imports from China, Iran, Taiwan, Indonesia and Malaysia may have an adverse impact on Surat, India's biggest manmade fibre fabric hub.
Quoting industry sources, the Times of India, said the anti-dumping duty on PTA imports will create a monopoly of big spinning houses, due to which, small and medium-scale spinners in Surat and Mumbai will suffer.
“This will further escalate yarn prices by Rs 3 to Rs 5 per kilogram in the domestic market, thereby increasing the final cost of the polyester fabric manufactured in Surat,” they said.
As per the government notification, PTA imports from China, Iran, Taiwan, Indonesia and Malaysia will attract duty ranging between $85.67 and $168.76 per ton.
The resultant high import duty will prevent small spinners in Surat and other places in the country from importing PTA, the main raw material for manufacturing polyester yarn.
Surat Art Silk Cloth Manufacturers' Association (SASCMA) secretary Dinesh Zaveri told TOI, "There is an urgent need for anti-dumping duty on fabrics and not PTA imported from China and other foreign countries.”
“The anti-dumping duty on PTA will certainly monopolise yarn manufacturing business, and big industries will dictate the prices of yarn in the domestic market, which will be increased by Rs 3 to Rs 4 per kilogram," he added. (AR)
Quoting industry sources, the Times of India, said the anti-dumping duty on PTA imports will create a monopoly of big spinning houses, due to which, small and medium-scale spinners in Surat and Mumbai will suffer.
“This will further escalate yarn prices by Rs 3 to Rs 5 per kilogram in the domestic market, thereby increasing the final cost of the polyester fabric manufactured in Surat,” they said.
As per the government notification, PTA imports from China, Iran, Taiwan, Indonesia and Malaysia will attract duty ranging between $85.67 and $168.76 per ton.
The resultant high import duty will prevent small spinners in Surat and other places in the country from importing PTA, the main raw material for manufacturing polyester yarn.
Surat Art Silk Cloth Manufacturers' Association (SASCMA) secretary Dinesh Zaveri told TOI, "There is an urgent need for anti-dumping duty on fabrics and not PTA imported from China and other foreign countries.”
“The anti-dumping duty on PTA will certainly monopolise yarn manufacturing business, and big industries will dictate the prices of yarn in the domestic market, which will be increased by Rs 3 to Rs 4 per kilogram," he added. (AR)
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