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Dumping Probe into Chinese Silk

Dumping Probe into Chinese Silk

Write: Hutton [2011-05-20]

The director-general of anti-dumping and allied duties has commenced probe into alleged ?umping?of Chinese silk fabrics in India. The investigation has been initiated on a petition filed by the Central Silk Board (CSB) on behalf of domestic silk producers who claim to be losing out to low priced Chinese silk fabric imports.

However, cheap and high grade Chinese silk fabrics are in demand from the silk apparel manufacturers. The Chinese silk fabrics being a key raw material for apparel, the apprel units do not want any restrictions on the imports.

In fact, an anti-dumping duty on Chinese silk yarn already exists. Since the imposition of dumping duty on yarn, the Chinese industry has augmented exports of fabrics.

According to a senior commerce department official, the anti-dumping probe would attempt to ascertain if imports from China had caused any ?aterial injury?to the Indian silk industry. ?f at all there is an injury, we will also have to establish the nexus between that and the imports,?the official added.

It may be noted that earlier this month, importers (manufacturers of high value silk apparel) complained about the quality of Chinese silk georgette fabrics. Chinese silk exporters had been supplying silk georgette fabric with high moisture content which has caused a loss of worth Rs 12 crore to atleast 10 importers.

The Silk Importers and Exporters Association of India (SIEAI) and the Indian Silk Export Promotion Council (ISEPC) had approached to the textile ministry and the Chinese ambassador for redressal. According to industry experts, this is the first time that the Chinese are playing foul with the quality of silk, raising serious concern as they are largest producers of top grade silk.

SUSHMA KINDO