Chinese Fabric imports destroying Indian Powerloom industry
In 2013-14 , The declared value of imported cloth from China was Rs.5,500 crore. Since it was very under invoiced, the real value was over 8,000 crore. It is now increasing to 12,000 crores. Also most of the cloth is being imported illegally via Bangladesh. It is more than 12,00,000 shuttle powerlooms and resulted in unemployment of more than 2 million shuttle powerloom workers.
North Indian looms lost jobs by China's imports and they have started to produce the TamilNadu plain gada cloth which was mostly produced in Tamil Nadu. This leads to price reduction, work stoppage & unemployment. While the living and working costs are continously increasing, shuttle Powerloom owners are forced for the reduced price of 2011 in 2017. So shuttle powerloom owners were forced for 20% to 30% reduction in price and were unable to cover the bank dues. So many of their factories were announced as NPAs and put up for auction by banks.
For details click here :
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The raw materials (cotton and yarn) were exported from India to China and cloth is manufactured in Chinese looms and imported back to India with undervalue & Also routed via Bangladesh. China Government encourages to destroy and capture other country markets and has written off Bad debts around 20 Lakh Crores (US$ 304 Billion) for the losses of Chinese companies. Backed by Chinese Government for any losses, Chinese companies are vigorously doing the same in all sectors (textile, crackers, steel, electrical equipment, vehicle tyres etc..).
For details click here : http://indianexpress.com/
Last week Gujarat textile co-operative society associations requested to impose duty on Chinese fabrics.
We request to impose Anti-Dumping duty for cloth import as announced by The Honourable Textile Minister in December 2016.
Recenty Indian Government has imposed Anti Dumping Duty (ADD) for below Chinese products.
1) 47 type of Steel products – ADD Rs.33kg (US$ 478 to US$561 per ton)
2) Ceramic tiles $1.07 per Kg.
For details click here: http://economictimes.
3) Kitchenware items. Same above link.
4) Aluminum foil US$ 1.63 per KG.
5) PTFE (used for electronics) US$ 2,663 per ton. Ban imposed on 31.07.2017.
But Ministry of commerce is seeking evidences from powerloom people to provide evidences of such import of Chinese fabrics. We are in unorganized sector and we are unable to collect details from customs / sales tax departments. So we request Government to take self initiative and implement AntiDumping duty on Chinese fabrics atleast US$ 0.25 per metre to secure millions of powerloom workers.
Hence we request to impose Anti-Dumping duty for cloth import as announced by The Honourable Textile Minister in December 2016.
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