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BANGALORE: The commerce ministry’s final order on the anti-dumping duty to be levied on imported Chinese silk fabric is expected to be passed in the next few weeks, according to official sources. An interim order had been passed a few months ago.

This is not the first time that the government is imposing duty on Chinese silk. In ’04-05, anti-dumping duty had been levied on Chinese raw silk (yarn). The Chinese changed tack and began to export large quantities of fabric to India.

Official sources say the quantum of duty to be imposed would take into consideration the fact that the dumping margin for
Chinese fabric ranged from 57 to 115%. “The landed price of Chinese fabric ranges between $1 and $1.25 per metre against their domestic price of $2.25 to $3,” sources add.

India’s imports of Chinese fabric soared to 3,597 tonnes in ’04-05 from 3,208 tonnes in ’03-04. Sources at the Central Silk Board (CSB) said that the commerce ministry had built a solid case for levying duty.

Some chambers of commerce in China have even been sending feelers seeking a settlement before the final order is passed by the director-general of anti-dumping and allied duties. The earlier decision to impose duty on silk yarn had helped to stabilise domestic prices.

Imports of yarn, however, continue to be robust. India is the world’s second largest silk producer with an annual output of 15,000 tonnes, with mulberry accounting for over 90% and eri, tasar and muga the rest.

Source:Industry Website