The Northern India Textile Mills' Association has urged the government to levy the Anti-Dumping Duty (ADD) on Polyester Spun Yarn similar to the proposed duty for viscose spun yarn imported from Indonesia, Vietnam and China. PSY imports have gone up from 5,833 tons in 2015, to 43,306 tons in 2019 from these four countries. The four countries are: Indonesia, China, Vietnam, and Nepal. Monthly average imports of Virgin Polyester Spun Yarn (under the PUC) have increased 972 per cent between 2015 and 2020. Imports from Vietnam alone increased a massive 10,512 per cent, that is, 107 times.

Average monthly imports for 2020 are 5,212 tons/month out of the total domestic monthly consumption of 22,000 tons/month, which means that imports enjoy 25 per cent of the total market share. “Import numbers have been rising substantially year after year due to an extremely and unreasonably low prices offered by Indonesian and Vietnamese spinners on account of huge idle capacities created owing to their government's incentives,” the NITMA statement said.

According to NITMA President Sanjay Garg, rise in import quantities being dumped into India has the potential to cause an irreparable injury to domestic PSY spinning sector with the cascading effect, from closure of mills to NPAs, and eventually resulting into massive loss of employment.