India may impose anti-dumping duties on viscose spun yarn to protect domestic players from cheap imports from China, Indonesia and Vietnam. The Manmade Yarn Manufacturers Association of India have urged the government for this as the viscose yarn imports from these countries hurt domestic manufacturers. Following the investigation, the Department of Trade Remedies under India’s Ministry of Commerce & Industry recommended the move.
Viscose spun yarn originating or exported from China, Indonesia, and Vietnam will attract duties ranging from $0.25 to $0.80 per kg for five years from the date of notification issued by, DGTR said in its final investigative data. The product under consideration is viscose spun yarn, which is not kept for retail except sewing thread by weight of synthetic viscose staple fiber by 85 per cent or more by weight. Demand for viscose fabric has risen sharply in recent months.
Viscose-cotton blended yarn production is currently limited to a few spinning mills in and around Erode. These spinning mills can meet only 50 per cent of the domestic demand, which has resulted in increased imports.
The price of viscose yarn, which was around $1.98 per kg, has risen to $3.01 per kg today due to the government announcement. However, industry experts feel that now is not the right time to impose anti-dumping duty on viscose cut yarn. As the proposed tariff would affect viscose garment production in the domestic and export markets.