Ludhiana, August 11, 2023: AAP MP from Ludhiana Sanjeev Arora was supposed to raise an important matter related to Anti-Dumping Duty (ADD) on Polyester Spun Yarn (PSY) & import duty on Cotton in the going monsoon session of Raya Sabha but it could not be raised because of adjournment of the House.

In a statement here today, Arora said, “The matter was listed as Item No.3 for raising it during Zero Hour in Rajya Sabha on August 7 but the matter could not be raised as the House was adjourned.” However, the matter would be sent to concerned Union Ministers to give a reply.

Arora drew the attention of the Government towards a matter which has severely affected the working and survival of spinning mills in India especially Ludhiana in Punjab.

He said through various forums and platforms, he has been receiving appeals to impose anti-dumping duty on import of polyester spun yarn (PSY) under ASEAN Free Trade Agreement (FTA) & making import of Cotton duty free as this will provide a level playing field for all the stakeholders in the textile sector.

Arora said it is shocking to learn that the Central Government, after considering the final findings of the designated authority, has decided not to accept the aforesaid recommendations.

He pointed out that the Indian textile industry contributes to 40 per cent of the country’s demand for man-made fibers. It employs more than 6.5 lakh powerloom machines weaving 3 crore meters of cloth a day, and a yearly consumption of over 6 lakh metric tons of various yarns and fibers.

Arora pointed out that the government's decision of not imposing definitive anti-dumping duty on imports of “Polyester Yarn (Polyester Spun Yarn)” originating in or exported from China PR, Indonesia, Nepal and Vietnam has cast a shadow on the domestic weaving sector which is mainly dependent of various types of synthetic yarns. Also, it defeats the goal of Made in India.

Arora has requested to reconsider the decision of not imposing ADD on PSY as it has already distorted the operating environment and affected the industry performance and also under the inverted duty structure on man-made fibre (MMF) chain, raw material, including viscose and polyester staple fibre, is taxed at 18 per cent whereas the yarn is taxed at 12 per cent, which creates huge accumulation of GST refunds, leading to blockage of working capital, inability to take GST credit on capital goods, besides time-consuming and cumbersome process for taking refunds.

Further, Arora urged the government for removal of 11 per cent import duty on raw cotton which was introduced in October 2021, the BIS standard on polyester spun yarn (IS 17265) had been repeatedly postponed and the next date for the implementation of the same has been fixed as October 5. He urged the government to not give any further extensions so as to prevent low quality material being produced and sold in the markets.

Arora categorically stated that if immediate steps are not taken by the government to revive the Textile Industry, almost more than 2 million people are going to be unemployed. He said banks are going to have NPAs and revival will become not difficult but impossible if timely action is not initiated.