The Shortage Of Raw Materials Supply In India'S Textile Industry May Affect The Livelihood Of Hundreds Of Thousands Of Workers!

India's national textile and clothing Commission (NCTC) has called on Prime Minister modi to lift the anti-dumping duty on viscose staple fiber (VSF) and solve the supply and price problems of VSF yarn, so as to prevent the loss of work related to the whole VSF textile value chain.

The leaders of the textile associations of various industries in the VSF value chain under NCTC, including the clothing Export Promotion Council, the Federation of textile industries of India, the clothing manufacturers association of India, the Spinning Association of India and the Export Promotion Association for the development of woven fabrics, have submitted a joint representative statement to the prime minister, urging the government to seriously consider the issue of rising VSF prices in India.

The statement called on the Indian government to abolish the anti-dumping duty on imports of VSF, so as to enhance India's global competitiveness and achieve the target set by the Ministry of textile to reach 350 billion US dollars in 2025.

NCTC said the growing demand for VSF and the increased market opportunities for its blended fabrics and garments have led to an increase in demand for VSF not only in India, but also in the world.

The price of imported yarn is cheaper in comparison with the high anti-dumping duty imposed on VSF, the NCTC said. Therefore, the weaving and knitting industry continue to import a large number of VSF staple yarn. The import volume of VSF staple yarn has increased from 2 million kg in 2016 / 17 to 56 million kg in 2019 / 20.

NCTC also stressed that the price of VSF has risen from US $1.15 per kilogram to US $1.50 in the past few months based on the market conditions after the outbreak. NCTC said that due to the high price of domestic VSF caused by anti-dumping duty (up to US $0.512 per kg), the demand for domestic staple yarn was reduced, which affected the supply and price of the whole VSF value chain, especially the knitting and power loom industries.

All the major VSF power loom industrial settlements in the states such as Tamil Nadu, Maharashtra, Gujarat, etc. resisted the rapid rise in VSF prices.

In view of the above, the NCTC has called on the prime minister to eliminate the anti-dumping duty imposed on VSF to solve the urgent problems, to grasp the opportunities in emerging markets and to protect the livelihood of hundreds of thousands of workers employed in VSF's textile value chain. This is another appeal to the prime minister in this regard.

India's final anti dumping ruling on China related viscose staple yarn

As early as January 14, 2020, India launched an anti-dumping investigation on viscose staple yarn originated from or imported from China, Indonesia and Vietnam. It has been nearly one year since the initiation of the anti-dumping investigation and the publication of the final determination results. During this period, it is believed that most people in the industry have made corresponding plans and psychological measures.

The obvious growth of viscose staple fiber single yarn export this year is largely due to the increase in export volume to India. As of January November 2020, China's export of viscose staple fiber single yarn to India was 59500 tons, 217.33% year-on-year. The export volume to India was far higher than that of Brazil, and it was once the largest exporter of viscose staple yarn.

The main driving force for the growth of viscose staple fiber single yarn export this year is the increase of China's viscose staple fiber single yarn export from January to November 2019. Compared with the number of top 15 export countries in 2020, the export volume to Brazil and India increased by 13.11% and 217.33%, while the export volume to Bangladesh, Vietnam and the United States was - 15.83%, - 31.48% respectively- From January to November 2020, the total quantity of viscose staple fiber single yarn exported to Indonesia was 20.42 tons, which was - 92.13% year on year.

From January to November 2019, the number of viscose staple fiber single yarn exported to the top 15 countries can account for more than 92% of the total export volume. From January to November 2020, the same 15 countries account for 97% of the total export volume of viscose staple fiber single yarn. Therefore, it is obvious that the main driving force for the growth of viscose staple fiber single yarn export in 2020 is the increase of India's demand for China, which may be the start of anti-dumping cases in January 2020 The stock up response after the investigation, on the contrary, once increased the substantial growth of yarn exports to India.

At present, India has made the final judgment of anti-dumping arbitration on viscose staple yarn, and the subsequent export volume of viscose staple yarn to India will eventually be affected. If India wants to maintain its position as the largest exporter of viscose staple yarn this year, it will also have a certain impact on the export volume of viscose staple yarn. However, the overall export volume of viscose staple yarn will be affected In addition, under the background of dual circulation, domestic demand can still be digested, and the proportion of products converted to the back track export exists, the export shrinkage has little impact on the human cotton yarn and even the whole chain.

India's textile industry, which has been greatly affected by raw material output and import and export, may usher in great changes in its territory. India relies heavily on China for synthetic materials, certain fibers, yarns and fabrics, and textile related machinery due to its limited capacity. It is reported that, excluding knitting machines, lace machines and spinning machines, India will import about 460 million US dollars of synthetic yarn and 360 million dollars of synthetic fabrics (nylon) from China every year, as well as clothing accessories such as buttons, zippers, hangers and needles worth more than 140 million dollars.

India is not only the second largest producer of raw silk, but also the world's largest consumer of raw silk, according to the Indian Silk Export Promotion Council (isepc). Sanjeev Kumar, senior director of isepc, said, "over the past five years, the number of locally produced silk thread in India has gradually increased, which has correspondingly reduced India's dependence on China and other countries on imported silk thread." Isepc said that in order to reduce India's dependence on imported silk thread, India's Ministry of textile is promoting the "silk samagra" project to improve the quality and output value of Indian silk thread.

Despite the size of India's textile market, it is still struggling in the global market. Since Vietnam is the world's third largest clothing manufacturer, Bangladesh's clothing exports have increased from 26 billion US dollars to more than 33 billion US dollars in the past five years, while India's exports have been stagnating at about 36 billion US dollars. According to the data, India's textile exports fell by 5% in the 2019-2020 fiscal year.