India:Anti-dumping duty on Chinese silks demanded
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2005-12-07 15:04:00
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BANGALORE: The Karnataka government-run Central Silk Board has asked Director General, Anti-Dumping Cell (New Delhi), to impose anti-dumping duty against China for offloading the fabric at excessively cheap rates in India.
World's second largest silk producer India is in sight of winning an anti-dumping probe into the import of Chinese silk fabrics into the country, a top Central Silk Board official has said.
"An initial notification issued by the Director General, Anti-Dumping, has said that there is evidence of dumping of Chinese silk fabrics into India. But this has to be substantiated with documents. This is expected to take time," K. Sukumar Menon, Joint Director, Central Silk Board, told The Hindu here on Monday.
Following India's decision to impose an anti-dumping duty on Chinese raw silk, large quantities of Chinese silk fabrics were being dumped into the country at prices that were less than the domestic prices, hitting the silk weavers.
"Chinese silk fabrics are being imported into the country at prices ranging from $1 to $1.4 per sq. m. depending on the width and the weight of the fabric, whereas domestic prices are in the range of $2.25 to $2.75 per sq. m. So, there is a price differential of more than $1," Mr. Menon said. At the behest of weaver associations, the Central Silk Board had in May this year filed an anti-dumping case before the Director General, Anti Dumping, against Chinese silk fabric imports. "We hope to win the case. The documents are in the process of being submitted. In six months, the hearings will be held," said H. Basker, Chief Executive Officer and Member Secretary, Silk Board. Once the case is ruled in favour of the Silk Board, India will impose anti-dumping duty on silk fabrics, including silk sarees from China.
Mr. Menon said about 36 Chinese silk exporters have denied charges that they were dumping silk fabrics into India following responses sought by the Indian authorities.
India currently produces about 15,000 tonnes of silk as against the requirement of 25,000 tonnes. "The gap of 10,000 tonnes is bridged mainly through import of Chinese yarn and fabrics. By increasing the domestic production of silk, particularly the bi-voltine variety, we hope to cut silk imports from China by about 15 per cent in the next few years and bring it to about 7,500-8,000 tonnes. Eventually, in about six-seven years, we want to become self-sufficient in yarn and fabrics," Mr. Basker said.
The verdict on the anti-dumping case will have an effect on the import of yarn and fabrics from China, he added.