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To further support the Indian textile and apparel industry with its policy measures, the Indian government has removed anti-dumping duty (ADD) on Elastomeric Filament Yarn (EFY) commonly known as spandex yarn. EFY is widely used in the dress materials particularly om denim products. It is also widely used in stretch garments to provide stretch with recovery.
According to an industry source, recently, the Directorate General of Trade Remedies (DGTR) initiated sunset review of anti-dumping duty on EFY.
Earlier, ADD of $0.15/kg to $3.34/kg (₹13 to ₹250) was applicable on EFY and was valid upto May 2, 2022. The yarn is imported from China, South Korea, Vietnam and Taiwan. The
ADD was imposed by the government to protect domestic manufacturers. However, since the duty was imposed in 2017 for five years, market dynamics have changed. The import of EFY was necessitated due to huge demand-supply gap in the domestic market.
According to Fibre2Fashion’s market insight tool TexPro, currently, spandex yarn is priced at $7.20 to $9.60 per kg FOB at China’s port. It will cost for Indian importers at around ₹550-750 per kg on FOB basis at China’s port.
Textile industry has expressed satisfaction with the government’s decision. T Rajkumar, chairman, Confederation of Indian Textile Industry (CITI) thanked the government for removal of anti-dumping duty. He said that it will help the Indian textile and apparel industry in enhancing its competitiveness in the global markets.
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