Local spinning industry worried about Asean bloc’s market monopoly, calls for remedial action in Ludhiana

LUDHIANA: The spinning industry is tense about the demand for Polyster Spun Yarn (PSY) being hit by duty free imports of the cheaper product from Asean (Association of South East Asian Nations) countries, mainly Indonesia and Vietnam. Businessmen want the Centre to take corrective measures like imposing anti-dumping duty on imports of PSY to save the local spinning industry.
Businessmen feel that the free trade agreement (FTA) with Asean countries facilitated phenomenal rise in import of polyester spun yarn, causing huge losses to the local industry. A city industrialist has written to the finance minister about this.

Sanjeev Arora, industrialist and Rajya Sabha MP from the city said, “In view of the alarming situation caused by influx of imported PSY from Asean countries, I have written to finance minister Nirmala Seetharaman, urging her to impose anti-dumping duty (ADD) on PSY originating in or imported into the country from Asean countries under FTA. I have been receiving appeals and representations from the spinning industry to help them provide a level playing field as due to exemption of duties to exporters based in Asean countries, the cost of their products is cheaper than that of the local industry”
Spinning mills of Ludhiana and other areas of Punjab are the largest producers of PSY in India. It is the most commonly used yarn in the region. Imports of virgin PSY from Vietnam increased from 47 tons in 2015 to 6,612 tons in 2020-21.
Harish Dua, president, Knitwear and Apparel Exporters Organisation said, “Under the Asean-India FTA, a large quantity of PSY is being dumped into Ludhiana and rest of the country, which is very much cheaper than locally made yarn of the same type. During last five years, this problem has gone from bad to worse as a huge percentage of sales of locally made PSY has been grabbed by imported PSY due to the rate difference.”
Harish Kairpal, garment manufacturer and president of Ludhiana MSME Association said, “The rate of locally manufactured PSY of 30 single variety is Rs 158 per kilogram whereas the rate of the imported variety is about Rs 140 per kg. The rate of locally made 24 single variety is Rs 152 per kg while that of the imported variety is Rs 136 per kg. The rate of locally manufactured 20 Single is Rs 146 and that of the imported one is Rs 130-132 per kg.”