Rajya Sabha MP Writes To Finance Minister Sitharaman, Seeks Duty On Import Of Polyester Spun Yarn
It is concerning because PSY import by India has increased by 943% during the past five years, wrote AAP MP Sanjeev Arora.
Rajya Sabha MP Sanjeev Arora has written to Union Finance Minister Nirmala Sitharaman, seeking imposition of anti-dumping duty on polyester spun yarn imported from the ASEAN members under the free trade agreement.
In a letter to the FM, the Aam Aadmi Party MP mentioned that through various forums and platforms, he has been receiving appeals for imposition of anti-dumping duty on the import of polyester spun yarn under the Association of Southeast Asian Nations FTA, as this will provide a level-playing field for Indian manufacturers, according to a statement.
Arora said the domestic polyester spun yarn manufacturers are liable to pay import duty of 5.5% on manmade fibre, which makes domestic manufacturers uncompetitive against the imported PSY.
"It is concerning because PSY import by India has increased by 943% during the past five years, and imports from Vietnam alone have increased by 88 times," he said.
Arora wrote that in August 2021, the Directorate General of Trade Remedies had recommended that the anti-dumping duty be imposed on PSY originating in or from Indonesia, Vietnam and China.
However, an official communication from Ministry of Finance dated Jan. 8, 2022, states that "the Central Government, after considering the final findings of the designated authority, has decided not to accept the aforesaid recommendations."
Arora wrote that the Indian textile industry contributes to 40% of the country's demand in the shape of manmade fibre and employs more than 6.5 lakh workers.
He said the government's decision of not imposing definitive anti-dumping duty on imports of PSY from China, Indonesia and Vietnam has cast a shadow on the domestic weaving sector, which is mainly dependent on various types of synthetic yarns.
Arora urged the FM to impose anti-dumping duty on polyester spun yarn as it has already distorted the operating environment and affected the industry performance.
Another consideration, which can help the textile industry, is to make import of manmade fiber free of import duty, he said.
Arora hoped that the Union Finance Minister will consider the matter submitted before her in the larger interest of spinning mills in India, especially Punjab.
He expects that the FM will watch the interest of the industry which is considered the backbone of the economy of the country. "I hope that something concrete will come out in the forthcoming Union Budget to be presented by FM on Feb. 1 in Parliament," he said.