Facing an onslaught of imported undervalued Chinese fabrics, there is some good news for textile manufacturers in the country's largest man-made fabric (MMF) hub in Surat. The government is in the process of imposing anti-subsidy duty on import of fabrics from China, which is intended to make the prices of domestic fabric manufactured by the MMF sector competitive. Synthetic & Rayon Textile Export Promotion Council (SRTEPC) chairman Anil Rajvanshi said this during his visit to Surat for exhibitors' road show for the upcoming global buyer-sellers meet for man-made fibers and textile on Saturday.

Also known as a countervailing duty, this country specific duty, on imports is imposed to nullify subsidies provided by other nations and is intended to make prices of domestic products competitive. Importing countries also have other options, such as introducing an anti-dumping duty, to make domestic prices at par. The inquiry by India has been initiated under the supervision of director general of Anti-Dumping and Allied Duties, an arm of the ministry of commerce and industry.

The import of undervalued fabrics from China has paralysed the MMF sector in the city. Around 50 per cent of power loom weaving machines have shut down in the last two months, rendering over two lakh workers jobless. The production of polyester fabric has reduced from 4 crore metre per day to around 1.80 crore metre per day.