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Anti-dumping duty: Boon for yarn manufacturers, bane for garment makers, feels Inc |
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LUDHIANA: Imposing of anti-dumping duty of $547 on every metric tonne of all fully-drawn or fully-oriented yarn, spin draw yarn and flat yarn of polyester has evoked mixed response from the industry.
Chairman Vardhaman group, S P Oswal said the step would not be beneficial for garment manufacturers as they have to compete with manufacturers from Pakistan, Bangladesh, Sri Lanka and many other such countries that are getting yarn at cheaper price from China and some other countries. "This would ultimately hurt the international market of garment manufacturers in the country and thus impact our exports," he added.
However, chairman Ludhiana Knitwear Club Vinod Thapar said that though there is some bit of truth in the fact that garment manufacturers, especially those into t-shirts and shirts, will not be able to get cheaper yarn from China, the step would, at the same time, help manufacturers of yarn in our country. "I think that this is a good step and now government should also concentrate on providing more support to the industry at other levels so that yarn manufacturers are able to compete with China," he added.
Rajiv Garg, owner of Garg Acrylics, feels this would help filament yarn manufacturers, but says that to make things really beneficial, government should be imposing anti-dumping duty on fabric imported in large quantity from China. "Filament yarn is used in t-shirts and sports wear and would thus definitely have an impact on manufacturers as well."
Offering a neutral view, president of Punjab Spinners Association, Madan Mohan Vyas said the anti-dumping duty was not going to show much impact straight away. "This yarn is used more in mink blankets and sports wear. I would not deny that this would have an impact on garment manufacturers, but, at the same time I would say that things would change if the government gives more support to manufacturers in addition to levying of anti-dumping duty to strengthen its vision of 'Make in India'. I am quite sure that the government would take some more steps and measures to help manufacturers take on international competitors," he added.
Director of Duke group, Kuntal Jain said these steps hint that the government wants to help local industry and manufacturers. "However, I feel that more steps should be taken towards balancing the situation and providing a level playing field to all the sectors. There should be some incentives for the manufacturers, especially to help them in cost cutting and enable them to fight cheap goods from China," he added.
Source : timesofindia.indiatimes.com
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