Country Report

Dumping Duty Mostly Unlikely On Indonesian Viscose

Published: March 31, 2023

According to two individuals with knowledge of the development, the Union finance ministry may decide against imposing anti-dumping duties (ADD) on viscose staple fibre (VSF) from Indonesia because doing so could make the shortage of this crucial raw material for India’s textile industry worse.

As part of a government effort to raise the calibre of textiles, the Directorate General of Trade Remedies (DGTR) of the Ministry of Commerce proposed a duty of $0.512/kg on these imports in December. However, a dozen or so lawmakers, including some from the governing party, recently warned the finance minister Nirmala Sitharaman that this could result in a 40-per-kg increase in the import price of viscose fibre. The second cited source claimed that the requirement for VSF was suggested as part of attempts to increase quality, and that is no longer anticipated. “The market is aware of the need for quality, but the government must recognise that our customers cannot be impacted. Bangladesh and Vietnam are fierce competitors, and if buyers can find a better deal elsewhere, they won’t purchase from India. Force can’t produce excellence. The individual continued, “The government should adopt a temporary measure where it might be voluntary for a year.

As of publication, the ministries of trade, textiles, and finance had not responded to inquiries.

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