Indian poly spun yarn price rises after recent order regarding ADD

Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a decision by the Central government to impose anti-dumping duty on imports from China, Indonesia and Vietnam. DGTR had recommended to impose duty on the imports after due diligence investigation on the issue. The Tribunal has ordered the government on January 18, 2023 to reconsider the recommendations made by DGTR. 

Polyester spun yarn prices in India rose 3-4 per cent in last fortnight, but it was not caused by a sudden rise in demand from downstream industry. It is due to a legal case fought by a Punjab-based company against non-imposition of anti-dumping duty (ADD) on polyester spun yarn despite recommendations by Director General of Trade Remedies (DGTR).

Punjab based company Arisudana Industries Ltd had filed a case in the tribunal against the Central government, DGTR and other concerned parties. After the order of CESTAT asking the Central government to reconsider recommendation of DGTR for imposition of 100 per cent ADD on import of poly yarns from China, Indonesia and Vietnam. According to the order, all imports of 100 per cent poly spun yarns were supposed to attract duty with effect from January 18, 2023 in case the Central government accepts the recommendations. Arisudana has won the legal fight against the Central government on non-imposition of anti-dumping duty recommended by DGTR. Accordingly, the Central government may impose provisional safeguard duty with immediate effect.

According to market sources, 30 counts poly spun yarn prices rose to ₹153-160 per kg (GST paid) in Ludhiana market in the last 8-10 days. Earlier, it was sold at ₹150-155 per kg. In Surat market, 30 counts polyester spun yarn prices increased from ₹135-136 to ₹137-138 per kg (GST extra). The price of 40 counts poly spun yarn increased to ₹153-155 from ₹145-146 per kg.

Ashok Singhal, an industry veteran from Ludhiana, told Fibre2Fashion, “The price of polyester spun yarn increased after the order from the tribunal. There was expectation that the government may reconsider imposition of anti-dumping duty on imports from China, Indonesia and Vietnam. However, demand from downstream industry was not so encouraging. Weaving and garment industries are not too keen for purchases.”

Fibre2Fashion News Desk (KUL)