27 January 2023, Mumbai
The spinning industry in Ludhiana is tense about the demand for polyester spun yarn being hit by duty-free imports of cheaper products from ASEAN countries, mainly Indonesia and Vietnam.
Spinning mills of Ludhiana and other areas of Punjab are the largest producers of polyester spun yarn in India. It is the most commonly used yarn in the region. Businessmen want the Center to take corrective measures like imposing anti-dumping duty on imports of polyester spun yarn to save the spinning industry and feel that the free trade agreement with Asean countries has facilitated a phenomenal rise in imports of polyester spun yarn, which has caused huge losses to the industry.
They want an anti-dumping duty to be imposed on polyester spun yarn originating in or imported into the country from ASEAN countries under the free trade agreement.
The spinning industry wants to be provided a level playing field as due to the exemption of duties to exporters based in ASEAN countries, the cost of their products is cheaper than that of the local industry. During the last five years, especially, this problem has gone from bad to worse as a huge percentage of sales of locally made polyester spun yarn has been grabbed by imported polyester spun yarn due to the rate difference.
