India plans to impose anti-dumping duty of up to $4.83 per kg on Chinese flax yarn of below 70 lea. The duty will be imposed for five years to guard domestic players from cheap imports from the neighboring country. The recommended duty ranges between $1.30 per kg and $4.83 per kg. It is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters.
Flax yarn is used for making flax fabric, which has applications in apparel sector such as dresses, jackets, shirts and home textiles. The commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR) has conducted a probe of alleged dumping of 'flax yarn of below 70 lea count' from China, following a complaint from Jaya Shree Textiles unit of Grasim Industries.
In its final findings of the probe, the DGTR has concluded that due to dumped imports, the domestic industry has suffered material injury.