The Association of Man-made Fibre Industry of India has requested the finance ministry to accept the Directorate General of Trade Remedies (DGTR) recommendation to levy an anti-dumping duty on imports of viscose staple fibre (VSF), which is used in ready-made garments, home and industrial textiles.
On December 19, DGTR recommended the duty due to large-scale dumping at below-cost prices by Chinese backed firms.
The previous duty expired in August 2021 and there has been a fivefold increase in monthly VSF imports into India at predatory prices, the association said.
“India’s FTAs with ASEAN nations allow for export of VSF to India at zero duty. The association has indicated to the finance minister that a Chinese backed player has set large VSF plants in Indonesia to flood the Indian market by taking advantage of the FTA,” it said in a letter to the finance ministry.