Data on Chinese import to be collected paralyzing MMF sector

Minister of state for textile Ajay Tamta, who was in the city to inaugurate Surat International Textile Expo (SITEX) organized by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) here on Saturday, said the data on Chinese import will allow the government to decide on an appropriate duty structure.

As the import of undervalued fabrics from China, has paralyzed the MMF sector in the city. Around 50 percent of powerloom weaving machines are running at around 70 percent of their capacity, thereby rendering many textile workers jobless since last few years. The production of polyester fabrics has been reduced from 4 crore metre per day to around 1.8 crore metre per day.

Minister of state for textiles Ajay Tamta has directed the textile commissioner’s office to gather a comprehensive data from all the ports across the country on the volume of fabrics being imported into the country from China.

Earlier, the ministry of textiles had asked textile industry leaders in the city to provide them with data of volume of fabrics being imported from China.

The inquiry by India has been initiated under the supervision of directorate general of anti-dumping and allied duties, an arm of the ministry of commerce and industry, Tamta added.

Tamta said that as it is impossible for the unorganized textile sector to gather relevant data on import of fabrics. It is required that the textile department should make efforts to gather information on the volume of imported fabrics, so that necessary action could be taken.

According to Tamta, country specific duty, also known as a countervailing duty, on imports is imposed to nullify subsidies provided by other nations and is intended to make prices of domestic products competitive. Importing countries also have other options, such as introducing an anti-dumping duty, to make domestic prices at par.