Vidarbha industries Association appeals to Hon’ble Union Finance Minister Nirmala Sitharaman to reject the recommendation of the Director General of trade remedies to Levying Anti dumping duty of 51 cents per kg of viscose staple fibre imported from Indonesia. If the ADD is levied, survival of Spinning Mills including MSME, power-looms, Handloom and Garment units will become unviable. It will make all the viscose based product much more expensive and uncompetitive at the downstream level. This new finding gives the protection to the tune of 28% on VSF by way of ADD to the already indigenous Monopolistic manufacturer i.e. Grasim Industries, who enjoy super returns on their investment over the past 10 years. Copy of VIA representation & Gazette Notification copies enclosed for your reference.
As Hon’ble Prime Minister has been taking Policy initiative to promote the use of manmade fibre by implementing PLI scheme and giving incentives for MSME sector for downstream Industries, so that India can become Value added product exporter and replicate success like Bangladesh.
This initiative will not only result in failure of the above schemes but will also affect the existing more than 4000 spinning Mills who use viscose fibre in their manufacturing process. It is also important to highlight that inverted duty structure already exist making these Spinning Mills very uncompetitive against Import of yans.
With imposition of ADD the mills will not be able to compete with the imported yarn and lot of Spinning Mills will turn into NPA creating huge unemployment and also the price of the yarns will go up for powerloom & handloom users, says a press note issued by Prashant Mohota, former Vice President of VIA.