SURAT REPORT The onslaught of cheap imports of Nylon yarn wounded local yarn spinners The members of the Nylon Spinners Association said that the Indian nylon filament yarn industry is suffering due to the onslaught of cheap imports. The imports of nylon yarn from China have increased from avg 23 mt/ month in the year 2016 to 1,250 mt/ month by the year 2019, the rise of almost 5180%. An extreme surge of imported yarn at different prices is affecting the local yarn spinning industry. In a press release, the association has stated that against the onslaught of cheap imports of the nylon yarn, the spinners had applied to impose Anti Dumping Duty. DGTR authorities conducted a detailed investigation of facts and figures of application and the DGTR office has concluded that there is a genuine injury to local yarn spinners. DGTR office has issued its “Disclosure Report” on nylon filament yarn anti-dumping petition on 4th February 2020. However, after the issue of disclosure report, vicious propaganda against this Anti Dumping Duty started by importers lobby by a few individuals with vested interests. The allegations issued by this lobby is baseless. Nylon accounts for only 2% in MMF, rest is Polyester, Viscose, and other fibers. Out of the 2% segment of Nylon weavers, 80-85% weavers uses Nylon yarn manufactured by India spinners. During 10 years of Anti DumpingDuty(2007-2017), the consumption of domestic produced Nylon yarn increased from 3000 mt/ month to 10,000 mt/month. This indicates the kind of support and cooperation among weavers, knitters, and domestic spinners. So, the allegation that if Anti Dumping Duty is imposed, weaving and Knitting industry will close and about 1 to 1.5 lac workers will be unemployed is meaningless. The prices of Nylon yarn are majorly dependent on international raw material prices as well on supply-de-
February 2020
mand. The domestic industry itself is having un-unutilized surplus capacities to the extent of 28-30% as against 18-20 imports. The argument that after implementation of Anti Dumping Duty, spinners will rig the prices of nylon yarn with ann increase of Rs 100/ kg is a blatant lie. The association has stated that power loom is being replaced to Rapier, Water jet and Air jet looms to reduce the cost of production, mainly with the help of the TUF scheme, capital & interest subsidy incentives by the state government. During the last two years, there was no Anti Dumping Duty. So, the allegation of around 1.5 lac power looms are scrapped in the last 2 years is vague to create fear in weavers. Indian made Nylon yarn is continuously being exported to Turkey, Bangladesh, Brazil, Italy, Egypt, Morocco, Algeria, Sri Lanka, etc. This itself proves that Indian made Nylon yarn is of international grade. Domestic spinning Industry is having an investment of about 3,000 crores and annually contributing approx 350 crores of GST with about 10,000 direct employment. The industry has exposure to 50,000 by way of dependent families, support services and logistic providers. If cheap imports continue, the local spinning industry has to shut down operations and the very spirit of Make in India will also Die.
in many quality has also given the rise in chemical prices. The prices of dyes Scarlett BR has risen 17%. Along with this, Rubein BL price increased by 12%, Blue GSL 8%, and Orange RL Prices have increased by 6.5% per kg. The price of Red CF Chemical, useful for printing in the mill, has risen by 70%. Before some time, the rate of this chemical was Rs 436 per kg, which has increased to 745. The availability of many colorchemicals is low. Supply against the demand of Pink SB Chemical is limited. Similarly, the supply of Red F3BL, Red YFBL, and Yellow NGL Chemical are less. The increase in the price of the color chemical has been implemented from 14 February. There are about 350 textile dyeing and printing mills in Sachin, Palsana, Pandesara, and Kadodara. About three crore meters of fabrics are processed in dyeing and printing mills per day. The textile processors said, if the chemical supply cycle is not regularized, the chemical price may further go up in the coming time. The recent rise in dye and chemical prices has increased the production cost of textile processors in the city. The association of textile processors has called a meeting in the next few days to decide on a hike in fabrics job charges. They may increase job charges by 5-7%.
SGCCI TO ORGANIZE A Price of textile chemi- TEXTILE EXHIBITION IN cal increased up to 17%, BANGLADESH The Southern Gujarat Chamber of fabrics job charges may Commerce and Industry(SGCCI) will organize a textile exhibition from 2 rise by 5-7 percent to 4 April 2020 in Dhaka, Bangladesh.
The variety of colors and chemicals used in textile processing mills has received an increase in prices. The chemicals and dye manufacturers in south Gujarat have been importing raw material from China in bulk quantities. Manufacturing of color dye raw material has been affected after the outbreak of coronavirus in China. The prices of textile chemicals rose by 6 to 17 percent. The short supply
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This event will encourage the Trade and Industry of South Gujarat and will help to promote the ‘Brand Surat’. In more than 100 stalls, various categories of textile yarn, fabrics, and machinery will be presented in this three days event. This expo will help local manufacturers, dealers and suppliers to showcase their product. This event will encourage local yarn and fabric producers to export their
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