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ReturnCheap Chinese silk imports threaten Banarasi sari industry
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PublishDate：
2006-08-24 15:39:00
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New Delhi, Aug 23 (IANS) Varanasi's famous Banarasi sari industry is facing severe threat from cheap silk fabrics imported from China, Minister of State for Textiles E.V.K.S. Elangovan said Wednesday.
While the government has no specific information about the various incentives provided to the silk manufacturers and exporters in China, Elangovan in a written reply in the Rajya Sabha admitted that 'investigation by the Director General of Antidumping and Allied Duties (DGAD) has revealed that China is exporting silk fabrics into India below their normal value leading to dumping'.
'The Banarasi sari industry has been adversely affected due to import of cheap Chinese fabric imported from China,' the minister informed the upper house of parliament.
To curb the import of cheap Chinese silk, India is imposing anti-dumping duty on medium and low quality silk of the grade 2 A and below. Grades above 2 A, which constitute high quality silk, are not subjected to anti-dumping duty.
'As raw silk produced from the domestic industry is also available to the power-loom silk industry in Varanasi at a price similar to the Chinese silk price or slightly lower price, therefore imposition of anti-dumping duty has not adversely affected Banarasi sari industry,' the minister stated.
The government took the step of checking Chinese silk imports after verifying complaints from the power-loom silk weavers associations of Karnataka, Uttar Pradesh and Gujarat with DGAD.
'The DGAD after the investigations had recommended imposition of provisional anti-dumping duty by issuing a gazette notification on April 28, 2006, pending final findings on silk fabric of weight 20-100 gm per metre imported from China. This has helped the power-loom industry,' Elangovan said.
While the government has no specific information about the various incentives provided to the silk manufacturers and exporters in China, Elangovan in a written reply in the Rajya Sabha admitted that 'investigation by the Director General of Antidumping and Allied Duties (DGAD) has revealed that China is exporting silk fabrics into India below their normal value leading to dumping'.
'The Banarasi sari industry has been adversely affected due to import of cheap Chinese fabric imported from China,' the minister informed the upper house of parliament.
To curb the import of cheap Chinese silk, India is imposing anti-dumping duty on medium and low quality silk of the grade 2 A and below. Grades above 2 A, which constitute high quality silk, are not subjected to anti-dumping duty.
'As raw silk produced from the domestic industry is also available to the power-loom silk industry in Varanasi at a price similar to the Chinese silk price or slightly lower price, therefore imposition of anti-dumping duty has not adversely affected Banarasi sari industry,' the minister stated.
The government took the step of checking Chinese silk imports after verifying complaints from the power-loom silk weavers associations of Karnataka, Uttar Pradesh and Gujarat with DGAD.
'The DGAD after the investigations had recommended imposition of provisional anti-dumping duty by issuing a gazette notification on April 28, 2006, pending final findings on silk fabric of weight 20-100 gm per metre imported from China. This has helped the power-loom industry,' Elangovan said.
