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MMF industry seeks quick steps to curb Chinese imports
25
Jun '16
Alleging that Chinese exporters are undervaluing their man made fibre (MMF) merchandise and dumping cheap synthetic fibres in the Indian market, industry bodies of MMF makers have sought immediate action from the Union government to curb the practice.

“A strong demand has been made to the government to levy 20 per cent as anti-subsidy duty based on a list of over 20 subsidy schemes that are offered to Chinese exporters who are resorting to undervaluation of fabrics as they get duty benefits from Chinese government,” said Anil Rajvanshi, Chairman of Synthetic Rayon Textiles Export Promotion Council (SRTEPC) during a recent visit to Surat.

The SRTEPC, Federation of Indian Art Silk Weaving Industry (FIASWI) and Association of Synthetic Fibre Industry (ASFI), have petitioned the government to levy an anti-subsidy duty on Chinese fabrics.

Rajvanshi said the industry associations had requested the Indian government to seek an explanation from China on the subsidies and hoped that a customs duty will be imposed on the landed price after factoring the subsidies given back home.

Rajvanshi had stated that Indian government officials had sought details on the fabric containers coming from China, valuation of the fabrics, etc.

Therefore, they were now urging the government to expedite the process of seeking clarification from the Chinese government on the various subsidies offered to its exporters that had resulted in dumping of synthetic fabrics and yarn in the Indian market.

According to industry sources, the total installed capacity of synthetic fibre in India is five million tonnes, while China has a surplus of nine million tonnes. Due to slowdown in China, the country has been dumping the surplus into India on the back of subsidies offered by the government.

"The import of synthetic textile from China in 2015-16 stood at $800 million. This was largely due to the surplus capacity with China," said Rajvanshi. (SH)

Fibre2Fashion News Desk – India


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