India: Nylon traders oppose levy of anti-dumping duty

25/10/2011 12:00 - 407 Views

SURAT: South Gujarat Nylon Traders Association (SGNTA) and South Gujarat Wrap Knitting Association (SGWKA) have jointly nylon filament yarn opposed levy of anti-dumping duty on nylon filament yarn by the central government.

Sources said the ministry of finance and the ministry of textile have jointly decided to review the levy of anti-dumping duty on nylon filament yarn. Five years ago, the government had levied anti-dumping duty ranging between Rs 40 and Rs 50 per kilogram on the import of nylon filament yarn. This is likely to be increased.

Industry leaders said anti-dumping duty on nylon filament yarn will lead to large-scale unemployment following shut down of weaving units and will have a serious impact on weaving and knitting sectors.

The country's biggest man-made fibre industry in the city, which contributes 40 per cent of the man-made fabric demand in the country, houses about 6 lakh weaving machines, out of which 1.5 lakh machines are using nylon filament yarn as their main raw material. Moreover, the city houses about 750 warp knitting units - there is a total investment of Rs 300 crore in this sector -- using nylon filament yarn as their main raw material.

The monthly requirement of nylon filament yarn is about 5,000 tonnes, out of which 3,300 tonnes, is supplied by the domestic nylon spinners and the rest is imported from countries like China, Taiwan, Malaysia, Indonesia and Korea.

President, SGNTA Vishnu Goenka told TOI, "There should be a level playing field for the importers and end users of nylon filament yarn in the city. We have urged the concerned ministries in the central government to adopt a neutral approach by fixing anti-dumping duty on the goods imported below certain fair value. If we are importing nylon filament yarn at $3 per kilogram and the same is available on similar price in the domestic market then anti-dumping duty should not be levied."

He said about 1,400 tonnes of nylon filament yarn needs to be imported every month to satisfy the manufacturing needs in the city.

"The domestic knitters are facing stiff competition from China as about 250 to 300 tonnes of knitted fabrics is imported per month. The government should impose anti-dumping duty on such products," Goenka said.

Source: timesofindia.indiatimes.com