Indian MMF sector to become globally competitive
The government has decided to remove the anti-dumping duty (ADD) on viscose staple fibre (VSF) originating in or exported from China and Indonesia, to make its prices competitive with the global prices. Fibre2Fashion asked cross-section of the textile industry how the removal of ADD is going to benefit the Man-made fibre (MMF) segment.
Unlike other manmade fibres, the viscose staple fibre produced by a single indigenous manufacturer was very expensive to the tune of ?20 per kg, though recently the domestic manufacturers have reduced the price to match with the international price to a certain extent. The export price concept extended by the indigenous manufacturers greatly affected the powerloom and downstream sectors, as the industry is predominantly MSME and fragmented. The anti-dumping duty on VSF ranged between US $0.103 per kg and US $0.512 per kg.
This will make available VSF raw materials at internationally competitive prices in India and facilitate the Indian MMF sector to become globally competitive. This will also promote ease of doing business in India and generate investment and employment in the VSF and MMF textile value chain.
The down-stream domestic industry, such as weaving & garmenting, will be substantially benefitted due to accessibility of fibre at competitive prices, empowering them to produce and export the viscose-based products at globally competitive prices.
The government has taken the right decision to promote the MMF segment under its PLI Scheme. We have been in favour of no import duties and anti-dumping duties on raw materials, as they make our garments' production more expensive
This is a much-expected step by our government, which should help us achieve price equality in the international markets. Until quite recently, only a few monopolies were playing a dominant role in India owing to the price disparity. But the removal of ADD will help the trade to grow in the export as well as domestic segments.
The removal of protectionist tariffs on VSF will align domestic VSF prices with global prices, making the entire Indian VSF textile value chain globally competitive. It will boost production and exports.
Published on: 17/08/2021
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.