SURAT: Powerloom weavers in the city have come together to challenge Union finance ministry's decision to impose anti-dumping duty on imported yarn.

Weavers in Surat's textile industry, who contribute to the nation's 40 per cent demand for man-made fabrics, have opposed Union finance ministry's proposal to impose anti-dumping duty on Full Draw Yarn (FDY) imported from China, Thailand, Taiwan and Vietnam.

In a meeting held on Saturday under the aegis of Federation of Indian Art Silk Weaving Industry (FIASWI), weavers said the anti-dumping duty on FDY would exploit the domestic yarn market and domestic spinners would monopolise the trade.

Sources said the finance ministry is yet to issue a notification on anti-dumping duty on FDY. They (ministry) have given 40 days period for suggestions and objections from the industry on the proposed duty.

Meanwhile, the weavers have decided to raise fund from industry stakeholders in order to contest the issue in Supreme Court and World Trade Organization. They plan to hire a cost accountant, a company secretary and lawyers to present their case before the court.

"We can point out various discrepancies in the preliminary finding of the government on the anti-dumping duty law on FDY. We will submit the discrepancies in our case before SC and WTO," said Ashok Jirawala, president, Varachha Weavers' Association.

Sources said, weavers have heaved a sigh of relief as election dates are likely to be announced in a day or two and this means delay in implementation of anti-dumping duty.

"The implementation of anti-dumping duty will take another three to four months. Till then the actual users (weavers) have the liberty to import yarn provided they have import licences," said Arun Jariwala, chairman, FIASWI.

According to Jariwala, the frontline spinners have slashed the prices of yarn by Rs 3 to Rs 13 on account of Lok Sabha election.