India’s Minister of State for Textiles Ajay Tamta has directed the textile commissioner’s office to gather data from ports all across the country about the volume of fabrics being imported from China.
He stated that this move would allow the Indian government to decide on an appropriate duty structure for such imports.
The development has come in the wake of recent reports that the import of undervalued fabrics from China has paralysed Surat’s manmade fibre industry. It was reported earlier that around 50% of powerloom weaving machines are running only at 70% capacity due to which many textile workers have been jobless for quite a few months.
It was also reported that production of polyester fabrics has fallen from 4 crore metres per day earlier to 1.8 crore metres per day.
The ministry of textiles had also asked textile industry leaders in Surat to provide data on the volume of fabrics being imported from China.
Tamta had said that since it is impossible for the unorganised textile sector to gather relevant data on import of fabrics, the textile department should make efforts to gather information about the volume of imported fabrics, so that necessary action could be taken.
He stated that country specific duty, which is also known as countervailing duty on imports is imposed to nullify subsidies provided by other nations and is intended to make prices of domestic products competitive.
Importing countries also have other options, such as introducing an anti-dumping duty, to make domestic prices at par.
Incidentally, India has already initiated an inquiry into undervalued imports under the supervision of the Directorate General of Anti-Dumping & Allied Duties, which is an arm of the Union Ministry of Commerce And Industry.