India has eliminated anti-dumping duties on Nepalese polyester yarn exports. The Indian government has issued a public notification in this regard.
Citing inbound imports of cheaper yarn from countries such as Nepal, Indonesia, China, and Vietnam, the Indian government has been putting trade restrictions on Nepali products from May 2020. According to the Indian daily ‘The Economic Times,’ the Directorate General of Trade Remedies, an institution of the Indian Commerce Ministry, took the action after a number of Indian enterprises complained about the dumping of yarn manufactured in Nepal.
Nepali yarn, one of the country’s main exportable items, has found substantial markets in India, Turkey, and Bangladesh. Three years earlier, Nepal faced a similar challenge from the Turkish government when the European country halted the comprehensive system of favours for Nepali imports, which was later repealed.
Similarly, Nepali yarn has been subjected to non-tariff restrictions from Bangladesh. Bangladesh has often made life tough for Nepali entrepreneurs by refusing to allow items to be transported through easily accessible entrance ports.
According to dealers, over 80% of the polyester yarn produced in the country is exported. According to Nepal Rastra Bank records, Nepal exported polyester yarn and threads worth Rs 7.34 billion during the previous fiscal year. A total of Rs 5.77 billion in yarn was sold to India alone.