Extension of anti-dumping duty on Chinese silk yarn, fabric sought
Inflow of silk yarn and fabrics from China at cheaper rates continues to draw flak from the silk community.
By Ratna Ganguli, ET Bureau |
KOLKATA: Inflow of silk yarn and fabrics from China at cheaper rates continues to draw flak from the silk community. Close on the heels of the state-owned Central Silk Board (CSB) raising the demand for extension of anti-dumping duty on Chinese silk yarn, a section of domestic silk fabrics producers has urged the government to restrain import of silk fabrics from China through a slew of measures.
To curb the rising silk yarn imports from China, CSB has filed a petition with the Centre to extend anti-dumping duty on silk yarn, coming from China, for another four years from January 2009 when the present tenure of the duty expires.
In the same vein, a section of domestic silk fabrics producers has urged the government to ban import of silk fabric rolls from China, weighing more than 100 gms per meter. For other types of silk fabric rolls, weighing between 25 gms and 80 gms per meter, they want an upward revision in the present minimum floor rates for charging the anti-dumping duty.
The Centre has extended the anti-dumping duty on mulberry raw silk imports from China till January 2009. The duty is imposed on the basis of landing price of $27.98 per kg of the raw silk or yarn. The rate was decided in July 2003. Imports below the price attracts the anti-dumping duty, which is equivalent to a differential between the base price and the landed price.
In case of silk fabrics, imported from China, the duty is charged as a differential between the actual invoice plus import duty and cess and the reference landing prices, which vary from $1.66 to $4.23 per meter. However, the duty is waived if such imports are made under the Duty Free Import Authorisation (DFIA) scheme for exports.
Taking forward the cause of sericulturalists and yarn reelers, a CSB official said raw silk import needs to be checked because its rampant import from China at cheaper rates puts prices of locally reared bivoltine (temperate silk) cocoons under stress. Not only this, such cheaper imports stand in the way of attaining self-reliance in production of silk yarns, he said.
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Arguing for the duty hike in case of silk fabrics, a leading silk fabric producer-cum-exporter said most common silk fabrics are of those grades which weigh less than 100 gms per meter. Due to lower floor prices for determining the anti-dumping duty, imports of these fabrics from China is going up every year at the detriment of local silk fabric producers.Silk fabrics, weighing below 100 gms per meter, are largely imported by merchants of sarees, printed and dyed fabrics. With imports of such silk material growing every year, it has posed threat to the survival of thousand of weavers in Varanasi (UP), Bhagalpur (Bihar), Dodlapur (Karnataka) and Kanchipuram (Tamil Nadu) , a leading silk fabric producer said. Currently, there is a 10,000 tonne gap in demand and supply of raw silk, which is entirely met through imports from China.
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