Cheap dumping from China troubles Indian textile industry

The leading textile players are seeking protection for the textile industry from cheap Chinese dumping in India. About 60 per cent of dumping in India is claimed to be done from China, and unofficial estimate of this trade size ranges from 20-40 per cent of the USD 105 billion domestic textile industry.

Udani’s firm Kaytee Corporation is one of the largest garment exporters to American retail chains. Udani said that the domestic industry is being harmed by apparel and fabric dumping from China since long and the government should take measures to properly regulate the inspection of the country-of-origin of goods coming to India.

He added that once China realizes that no more export can be done in India as per official limit, it ships the same goods to other countries like Hong Kong, Vietnam, Bangladesh and Cambodia for re-shipping it to India to avoid customs inspections.

Other large textile makers like Birla Cellulose, Century and many more are also impacted with increased Chinese dumping.

Rajeev Gopal, CMO of Birla Cellulose, the largest viscose staple fibre (VSF) producer in the world, said that until the issue of Chinese and Indonesian dumping in India is resolved, the plan to help propel the local manufacturers will fail.

Cheap dumping of products across the value chain from fibres to yarns to fabrics is claimed to impact the VSF industry thereby affecting the domestic consumption by 8-10 per cent because of such imports.