Offering a temporary relief to powerloom weavers in Surat, the Union Ministry of Textiles has delayed the imposition of an anti-dumping duty on nylon yarn.
The decision was prompted by a petition filed by nylon spinners Century Enka and Orilon, who sought an anti-dumping duty citing substantial losses caused by the influx of low-cost imported nylon yarn. However, powerloom leaders, including Mayur Golwala, Ashish Gujarati, and Vimal Bekawala, vocally opposed the petition. They challenged the spinners' claims of financial distress and warned that imposing additional duties would harm the weaving sector.
Golwala emphasized, the Ministry of Textiles had previously advised against anti-dumping duties in 2020. He also highlighted the steady growth in domestic nylon yarn production, which has kept pace with imports in recent years.
Emphasisng on the need for high-quality yarn, industry representatives pointed out, many Surat weaving units have invested in high-speed machines with capacities of 300 to 1,200 rpm, requiring superior yarn quality. Domestic spinners currently struggle to meet this demand, forcing weavers to depend on imported yarn to maintain operations.
Outlining the potential consequences of restricting nylon yarn imports, Ashish Gujarati, Former President, Southern Gujarat Chamber of Commerce and Industry (SGCCI), points out, Surat’s textile industry consumes supports approximately 80, 000 weaving machines besides employing 1 lakh workers by consuming 8,000-10,000 tons of nylon FDY yarn monthly. Any import restrictions could lead to machine shutdowns, turning them into scrap and causing widespread unemployment, he warns
Weaver leaders also refuted claims that imported yarn was responsible for the financial distress of companies like Praful Overseas, which recently became a non-performing asset (NPA). They argued, multiple factors contribute to an NPA status and rejected the notion that imported yarn was the sole cause. Instead, they asserted that imposing duties would merely increase profits for spinners at the expense of weavers and the broader textile sector.
The government’s decision to delay the imposition of anti-dumping duties has provided much-needed relief to Surat’s powerloom weavers. Industry leaders view the move as essential for sustaining Surat’s position as a major MMF textile hub, preserving jobs, and ensuring continued growth.
