The capacity utilization of the spinning and powerloom clusters in Erode alone has been affected to the tune of 30%.
Coimbatore: Southern India Mills Association (SIMA) has urged PM Modi to intervene for the removal of anti-dumping duty on VSF (Viscose Staple Fibre) and withdrawal of 10% import duty.
SIMA Chairman, Ashwin Chandran in a press release said, “The Indian textiles and clothing industry has established its dominant value added product market share both in domestic and international markets during the last several years especially in the recent past, more so in the superfine VSF and its blended textiles and clothing products.
The industry has been pleading the government to remove the anti-dumping duty of USD 0.103 to 0. 512 per kg imposed on the VSF during the last several years, which is under active consideration. The government is mulling the removal at the time of sunset review which is due in August 2021."
"Meanwhile, the Union Budget 2021-22 imposed 5% basic customs duty and 5% AIDC on cotton (effective rate 11% including 10% social welfare surcharge). This has greatly impacted the supply chain of both domestic and international markets and also spiraled domestic Indian ELS, organic and contamination free cotton prices that are already under acute shortage. 'SIMA' has urged for the immediate intervention of the Prime Minister for the removal of both anti-dumping duty on VSF and also the withdrawal of 10% import duty on cotton."
"Both the high value added market segments account around Rs.1,50,000 crores business size and employ over two million people, fetch GST revenue of Rs.5,000 crores and also forex earnings to the tune of Rs.75,000 crores apart from catering to the value added segments.
VSF and superfine cotton value chain supplies to the international brands, who have set up retails in the domestic market and the price crisis is being utilized as an opportunity by the neighbouring countries like Bangladesh and therefore, imports started looming large.
He has reiterated that out of 40 MMF products identified by the Ministry of Textiles under PLI Scheme, 18 products are made out of VSF and its blended fibres.
The capacity utilization of the spinning and powerloom clusters in Erode alone has been affected to the tune of 30% and therefore, the industry cannot wait till the sunset review and hence, urged the Hon’ble Prime Minister to withdraw the anti-dumping duty immediately."
"There is no question of dumping and causing injury to the domestic market. India has been mainly relying on the American PIMA and Egyptian GIZA and other ELS cotton for the domestic and international markets apart from the home grown DCH cotton.
The industry has been mixing the imported cotton with the indigenous cotton, as the availability of Indian cotton is not even 20% and the industry also has been mixing the imported ELS cotton with micro denier polyester modal and other speciality manmade fibres to produce high value added products."
"The industry has also been using bunny cotton grown in Telangana and other regions for mixing with the imported cotton and produced fine count yarns and its products.
DCH cotton was costing around Rs.52,000 per candy of 355 kgs during October 2020 and Rs.65,000 in January 2021 and the same got increased to Rs.73,000 after the levy of 10% duty.
This has greatly impacted the entire value chain. Hence 'SIMA' has sought immediate intervention of the Prime Minister for the removal of anti-dumping duty on VSF and withdrawal of 10% import duty." It is said.
SIMA Chairman, Ashwin Chandran in a press release said, “The Indian textiles and clothing industry has established its dominant value added product market share both in domestic and international markets during the last several years especially in the recent past, more so in the superfine VSF and its blended textiles and clothing products.
The industry has been pleading the government to remove the anti-dumping duty of USD 0.103 to 0. 512 per kg imposed on the VSF during the last several years, which is under active consideration. The government is mulling the removal at the time of sunset review which is due in August 2021."
"Meanwhile, the Union Budget 2021-22 imposed 5% basic customs duty and 5% AIDC on cotton (effective rate 11% including 10% social welfare surcharge). This has greatly impacted the supply chain of both domestic and international markets and also spiraled domestic Indian ELS, organic and contamination free cotton prices that are already under acute shortage. 'SIMA' has urged for the immediate intervention of the Prime Minister for the removal of both anti-dumping duty on VSF and also the withdrawal of 10% import duty on cotton."
"Both the high value added market segments account around Rs.1,50,000 crores business size and employ over two million people, fetch GST revenue of Rs.5,000 crores and also forex earnings to the tune of Rs.75,000 crores apart from catering to the value added segments.
VSF and superfine cotton value chain supplies to the international brands, who have set up retails in the domestic market and the price crisis is being utilized as an opportunity by the neighbouring countries like Bangladesh and therefore, imports started looming large.
He has reiterated that out of 40 MMF products identified by the Ministry of Textiles under PLI Scheme, 18 products are made out of VSF and its blended fibres.
The capacity utilization of the spinning and powerloom clusters in Erode alone has been affected to the tune of 30% and therefore, the industry cannot wait till the sunset review and hence, urged the Hon’ble Prime Minister to withdraw the anti-dumping duty immediately."
"There is no question of dumping and causing injury to the domestic market. India has been mainly relying on the American PIMA and Egyptian GIZA and other ELS cotton for the domestic and international markets apart from the home grown DCH cotton.
The industry has been mixing the imported cotton with the indigenous cotton, as the availability of Indian cotton is not even 20% and the industry also has been mixing the imported ELS cotton with micro denier polyester modal and other speciality manmade fibres to produce high value added products."
"The industry has also been using bunny cotton grown in Telangana and other regions for mixing with the imported cotton and produced fine count yarns and its products.
DCH cotton was costing around Rs.52,000 per candy of 355 kgs during October 2020 and Rs.65,000 in January 2021 and the same got increased to Rs.73,000 after the levy of 10% duty.
This has greatly impacted the entire value chain. Hence 'SIMA' has sought immediate intervention of the Prime Minister for the removal of anti-dumping duty on VSF and withdrawal of 10% import duty." It is said.