India is unlikely to impose anti-dumping duty (ADD) on viscose staple fibre (VSF) from Indonesia due to concerns that it could exacerbate the shortage of the key raw material for the textile industry.

In December 2022, the Directorate General of Trade Remedies (DGTR) recommended a duty of $0.512/kg on VSF imports as part of an initiative to enhance the quality of textiles. However, about a dozen Members of Parliament recently wrote to finance minister, arguing that the proposed duty would raise the import price of viscose fibre by up to INR40 per kg.

The government has not announced the duty, and the period where the decision was expected to come is now over. So, anti-dumping duty on VSF is unlikely.

The proposed imposition of the duty on VSF would have been a setback for the domestic textile manufacturers, who were already facing the prospect of trade disruptions, lower competitiveness, and economic losses. Domestic VSF demand was 700,000 tonnes in the financial year, while the availability was only 540,000 tonnes. The anonymous source further added that while the government is focusing on quality, it is also looking to maintain the availability of raw material.

VSF duty was recommended to improve the quality of the product, but it is not expected to be imposed anymore, considering there is tough competition in sourcing.