The Tamil Nadu Spinning Mills Association (TASMA) has urged the Textile and Commerce Ministries to levy anti-dumping duties on the rising inexpensive viscose staple yarn (VSY) imports from China.
As per K. Venkatachalam, Chief Advisor, TASMA, the rise in imports of cheaper Chinese VSY into the domestic market due to the US-China trade dispute has severely impacted the textile mills in the southern region. This is negatively affecting textile businesses around the Karur, Dindigul, and Pallipalayam areas in Tamil Nadu, he notes.
The ongoing US-China tariff war has led to China dumping its viscose staple yarn (VSY) in India at a low price of Rs 175 per kg. The uncompetitive fiber price by the monopoly manufacturer of VSF has led to stabilization of VSY price at Rs 198 per kg, explains Venkatchalam. .
Domestic VSY manufacturers cannot lower the price of VSY below Rs 198, even if they were to sell it at their cost price. Importing cheap viscose fiber into the country is not possible due to existing quality control regulations. All domestic spinning mills producing VSY are reliant on the monopoly manufacturer, which has priced VSF higher than the prevailing global market rates, he adds.
A price difference of Rs 13 per kg (approximately $0.16 per kg) of yarn is not economically viable for domestic mills. Unless the government steps in immediately to curb these cheap imports, the domestic mills engaged in VSY production will face shutdowns, warns Venkatachalam.
