Small and medium sized hosiery manufacturers in India have raised concerns over the introduction of an anti-dumping duty against imported polyester yarns from China or Thailand. Although the duty has been imposed to provide relief to local producers from an influx of cheap raw materials, small-scale hosiery manufacturers have expressed fears that businesses could be adversely affected.

One effect of the loss of cheap yarn is that hosiery manufacturers will be forced to bear the brunt of the increased costs of raw materials rather than passing on the higher costs to consumers. Thousands of manufacturers who were earlier procuring yarn in bulk from China and Thailand will now be forced to buy it in Indian market on higher rates, the effect of which subsequently be transferred to the consumers.

These manufacturers feel prices of hosiery products will see a rise but at the same time the move by the government will discourage unhealthy competition. The move apparently seems to be guided by the ruling government’s make in India plan where it encourages the purchase and selling of finished goods and raw material prepared indigenously.

The anti-dumping duty will be effective for a period of five years beginning October 21, 2015.