The Union minister for industry and commerce has accepted yarn manufacturers’ demand to impose anti-dumping duty (ADD) on the import of PSY from China, Indonesia and Vietnam. The demand was made by multiple bodies of yarn manufacturers including Northern India Textile Mills’ Association (NITMA), which claimed that the uncontrolled imports of PSY had eaten up a significant share of domestic markets and was hurting the local industry.

Sanjay Garg, President, NITMA said, there has been a huge surge in yarn imports post-GST, as with the removal of excise and other duties the polyester yarn is being cleared at zero duty. Imports of virgin PSY increased 943 per cent in five years and in a shocking trend, imports from Vietnam alone increased 88 times.

Aman Gupta, Vice President, NITMA, added due to increase in the imports of PSY, synthetic yarn segment of India’s textile sector was devastated, as a result most of the units had become NPAs and the rest were on the verge of it. Only a handful of PSY manufacturers in India are doing well and majority are in dire straits. The recommendation by the Union minister has come as a big relief for yarn manufacturers. Garg also urged the minister for finance to notify ADD at the earliest, as any delay will push the domestic industry backwards, jeopardizing jobs of many.