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India’s National Textile and Clothing Council (NCTC) recently called on Prime Minister Modi to cancel the anti-dumping duties on viscose staple fiber (VSF) and resolve the issue of VSF yarns. Supply and pricing issues to prevent related job losses across the VSF textile value chain.
Leaders of various industrial textile associations in the VSF value chain under NCTC, including the Apparel Export Promotion Council, Confederation of Indian Textile Industry, Indian Garment Manufacturers Association, Indian Spinning Association, and Weaving Development Export Promotion Association have Submit a joint representative statement to the Prime Minister calling on the government to seriously consider the issue of rising VSF prices in India.
The statement requires the Indian government to cancel the anti-dumping duties on imported VSF to enhance India’s global competitiveness and achieve the goal set by the Ministry of Textiles of making the Indian textile and apparel industry reach US$350 billion in 2025.
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NCTC stated that due to the growing demand for VSF and the increasing market opportunities for its blended fabrics and clothing, not only India’s demand for VSF has increased, and global demand has also increased sharply.
NCTC said that due to the high anti-dumping duties imposed on VSF, the price of imported yarn is cheaper in comparison. Therefore, the weaving and knitting industries continue to import VSF staple yarn in large quantities. VSF staple yarn imports have increased from 2 million kilograms in 2016/17 to 56 million kilograms in 2019/20.
NCTC also emphasized that based on the post-COVID-19 market conditions, VSF prices have increased from US$1.15 per kilogram to US$1.50 in the past few months. NCTC said that due to anti-dumping duties (as high as US$0.512 per kilogram), domestic VSF prices are high and demand for domestic staple yarn has decreased, thus affecting the supply and price of the entire VSF value chain, especially the knitting and power loom industries.
All major VSF power loom industry clusters in states such as Tamil Nadu, Maharashtra, and Gujarat are resisting the rapid increase in VSF prices.
In view of the above, NCTC has appealed to the Prime Minister to cancel the anti-dumping duties imposed on VSF to address the pressing issues, seize emerging market opportunities and protect the livelihoods of hundreds of thousands of workers employed in the VSF textile value chain. In this regard, I once again appeal to the Prime Minister.
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On December 30, 2020, the Indian Ministry of Commerce and Industry issued an announcement stating that products originating in or imported from China China, Indonesia and Vietnam have made a final affirmative anti-dumping ruling on viscose staple yarn. It is recommended that anti-dumping duties valid for 5 years be levied on the products involved in the above-mentioned countries, of which China is US$0.41-0.80/kg and Indonesia is US$0.25-0.44/kg. Kilogram, Vietnam is US$0.41/kg. See Table 1 for specific tax details. This case mainly involves products under Indian customs codes 55101110 and 55101210, as well as some products under 55101190, 55101290, 55109010 and 55109090.
Table 1 Final results of India’s anti-dumping duties against China-related viscose staple yarn
Source: Longzhong Information
As early as January 14, 2020, India imposed restrictions on products originating from or imported from China, Indonesia and Vietnam. The anti-dumping investigation of viscose staple fiber yarn has been launched. It has been nearly a year from the launch of the anti-dumping investigation to the release of the final results. During this period, I believe that most people in the industry have made countermeasures and psychological measures.
The export volume of viscose staple fiber yarn has maintained a continuous growth trend since 2015. The export volume from January to November 2020 was 173,900 tons, 56.39% year-on-year, of which the export volume of single yarn (55101100) 158,400 tons, 77.85% year-on-year, and stranded yarn (55101200) export volume was 15,500 tons, -30.01% year-on-year. Among them, single yarn is the main support for the export of viscose staple fiber yarn.
Source: Longzhong Information
A large part of the apparent growth in exports of viscose staple fiber single yarn this year comes from the increase in exports to India. As of 1-11 2020 In March, China exported 59,500 tons of viscose staple yarn to India, 217.33% year-on-year. The export volume to India far exceeded that of Brazil, which once made it the largest exporter of viscose staple yarn.
Source: Longzhong Information
The reason why the export volume of viscose staple fiber single yarn is the main driving force this year The increase in exports to India is due to the comparison of China’s viscose staple yarn exports to the top fifteen exporting countries from January to November 2019 with 2020. Among them, Brazil and India showed 13.11% and 217.33 % growth, while exports to Bangladesh, Vietnam, and the United States were -15.83%, -31.48%, and -94.91% respectively year-on-year. Indonesia is still not the main exporter of viscose staple yarn. From January to November 2020, exports to The total quantity of Indonesian viscose staple fiber single yarn is 20.42 tons, -92.13% year-on-year.
The number of viscose staple fiber single yarn exported to the top fifteen countries from January to November 2019 can account for the total export volume From January to November 2020, the same fifteen countries accounted for more than 92% of the viscose staple fiber unit.��Accounting for 97% of the total export volume, it is obvious that the main driving force for the growth of viscose staple yarn export volume in 2020 is India’s increased demand for China. This may be the stocking up after the anti-dumping investigation began in January 2020. In response, it once increased the substantial growth of yarn exports to India.
Source: Longzhong Information
At present, India has made progress in viscose staple fiber yarn The final ruling of the anti-dumping arbitration will ultimately affect the subsequent export volume of viscose staple yarn to India. If India wants to maintain its position as the largest exporter of viscose staple yarn this year, it will have to change again. At the same time, the overall viscose staple yarn export volume will also change. The export volume of viscose staple fiber yarn will also have a certain impact. However, given that the overall dependence of viscose staple fiber yarn on exports is relatively low, coupled with the dual cycle background, there is still a certain amount of domestic demand in China that can be digested, and the product has shifted to the back-end market. As long as the export ratio exists, the shrinkage of exports will have little impact on rayon yarn and even the entire chain.
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The Indian textile industry, which has been greatly affected by raw material output and import and export, may usher in a new era in its territory. Big changes. Due to limited production capacity, India is highly dependent on China for synthetic materials, certain fibers, yarns and fabrics, and textile-related machinery. It is reported that, excluding knitting machines, lace machines, spinning machines and other machines, India imports about 460 million U.S. dollars of synthetic yarn and 360 million U.S. dollars of synthetic fabrics (nylon) from China every year, as well as products worth more than 140 million U.S. dollars. Clothing accessories such as buttons, zippers, hangers and pins in US dollars.
The Indian Silk Export Promotion Council (ISEPC) stated that India is not only the second largest producer of raw silk, but also the largest consumer of raw silk in the world. Sanjeev Kumar, senior director of ISEPC, said, “In the past five years, the amount of silk threads produced in India has gradually increased, correspondingly reducing India’s dependence on imported silk threads from China and other countries.” ISEPC said that in order to reduce India’s dependence on imported silk threads, Indian Textile The Ministry is taking forward the project of “Silk Samagra” with a view to improving the quality and production value of silk threads produced in India.
Despite its size, the Indian textile market is still struggling in the global market. As Vietnam is the world’s third largest garment manufacturer and Bangladesh has increased its garment exports from US$26 billion to over US$33 billion in the past five years, India’s exports have remained stagnant at around US$36 billion. Data show that in the 2019-2020 fiscal year, India’s textile exports fell by 5%.
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