Indian govt removes ADD on spandex yarn, stretch items to get relief

According to an industry source, recently, the Directorate General of Trade Remedies (DGTR) initiated sunset review of anti-dumping duty on EFY.

Earlier, ADD of $0.15/kg to $3.34/kg (₹13 to ₹250) was applicable on EFY and was valid upto May 2, 2022. The yarn is imported from China, South Korea, Vietnam and Taiwan. The

ADD was imposed by the government to protect domestic manufacturers. However, since the duty was imposed in 2017 for five years, market dynamics have changed. The import of EFY was necessitated due to huge demand-supply gap in the domestic market.

According to Fibre2Fashion’s market insight tool TexPro, currently, spandex yarn is priced at $7.20 to $9.60 per kg FOB at China’s port. It will cost for Indian importers at around ₹550-750 per kg on FOB basis at China’s port.

Textile industry has expressed satisfaction with the government’s decision. T Rajkumar, chairman, Confederation of Indian Textile Industry (CITI) thanked the government for removal of anti-dumping duty. He said that it will help the Indian textile and apparel industry in enhancing its competitiveness in the global markets.

He said that the EFY production in the country is very limited, and consumption is very high. “EFY creates value addition in our textile products and increases our exports many-folds in the denim segment.” He said that the decision of removal of ADD on EFY would create a level playing field for the Indian textile industry in the international market and enable import of high quality EFYs at competitive rates.

CITI chairman also welcomed the announcements made by the finance minister Nirmala Sitharaman to give urgent relief not only to the common man but also to the manufacturing sector from the inflationary trends impacting prices. The government had provided relief by cutting excise duty on petroleum products like domestic LGP cylinders, petrol and diesel.

Commenting on the reduction in excise duty on petrol and diesel, Rajkumar said it has come as a big relief to the textiles and clothing industry which is presently facing an unprecedented rise in cotton prices. The government has also slashed customs duty on plastic product raw materials and their intermediaries, calibrating reduction in customs duty on raw materials and intermediaries for iron and steel and also the reduction of import duty on some raw materials of steel. “These measures would help the textile machinery, spares and accessory manufacturers to reduce the price that would benefit the textiles and clothing industry at large,” Rajkumar said.

Fibre2Fashion News Desk (KUL)