Indian Top Guns Seek Action Over Textile Dumping; 60 pc From China

If the present level of textile dumping continues unchecked, domestic industry will be extinct in the next few years.

Published: 14th September 2015 08:56 PM  |   Last Updated: 14th September 2015 08:56 PM   |  A+A-

By PTI

MUMBAI: On the heels of top guns of India Inc demanding protection for the textile industry from cheap Chinese imports, textile manufacturers and associations have warned that the domestic industry would be extinct if dumping is countered.

The industry claims that as much as 60 per cent of dumping happens from China, and unofficial estimate peg the size of this trade varying between 20 and 40 per cent of the USD 105-billion domestic textile industry.

"If the present level of dumping continues unchecked, the domestic textile industry will be extinct over the next few years. China, facing over capacity, has for long been dumping their fabrics and ready-made garments to our market through Bangladesh, Nepal, Vietnam and even Cambodia," Chairman for Policy, Apparel Export Promotion Council Premal Udani told PTI.

Udani's firm Kaytee Corporation is one of the largest garment exporters to American retail chains.

Pointing out that the domestic industry is facing the problem of Chinese or Chinese-origin apparel and fabric dumping from long, Udani said what the government should do is to ensure that our borders are better policed, and the customs officials do vigorous inspection of the country-of-origin of goods being shipped in and incentivise the domestic industry apart from engaging in better terms of trade with our neighbours.

He further said when China finds that shipments through one channel has reached the official limits, it starts exporting the same goods to other countries like Hong Kong, Vietnam, Bangladesh and Cambodia for onward shipping to India to avoid customs inspections.

The impact of increasing dumping by Chinese is also felt by the largest textile manufacturers like Birla Cellulose, Century, and other textile mills among others.

"Cheap dumping by Chinese and Indonesian manufacturers has been hurting us really badly. It's not that our domestic market is not growing. Unless we do something about the problem of dumping, the very plan of pushing local manufacturing will come a cropper," CMO, Birla Cellulose Rajeev Gopal, which is the largest viscose staple fibre (VSF) producer in the world, said.

The VSF industry claims that dumping of cheap products across the value chain from fibres to yarns to fabrics is hurting the domestic industry. Nearly 8-10 per cent of the domestic consumption of 25,000 tonne per month has been affected by such imports.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp