All Pakistan Textile Mills Association (Aptma) Chairman SM Tanveer has asked the Ministry of Commerce to take action against an abnormal rise in dumping of Indian cotton yarn that is putting viability of the domestic textile industry at stake. Tanveer said import data suggested that Indian exporters had dumped 26,000 tons of cotton yarn in 2013-14 and around 17,000 tons in 2012-13. The dumping reached 2,500 tons per month during July-November 2014. Therefore, alomost 100% rise in dumping of Indian yarn, necessitates immediate remedial measures from the Ministry of Commerce.
Tanveer pointed out that the heavy influx of yarn had dealt a blow to the domestic textile industry, which was meant to produce and launch around 140 products under different brands annually. India is offering incentives to its yarn exporters including 5% rebate on cotton yarn, 10.3% rebate on man-made fibre and 5% discount on interest payments in order to attract new investments. These include substantial federal and state subsidies.
In addition to these, India has imposed 10% customs duty on yarn imports, besides 12% countervailing duty (CVD) and 4% special CVD, which takes the cumulative impact to 30%.
Pakistan, however, has a nominal import duty of 5% and nothing more, making it an ideal market for dumping, Tanveer concluded.
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