The Tamilnadu Spinning Mills Association (TASMA) has sought the intervention of the Textile and Commerce Ministries to prevent the flooding of cheaper viscose staple yarn (VSY) imports from China into the country and save the country’s spinning sector.
TASMA has urged the ministries to impose anti-dumping duties against the deluge of VSY imports from China, said K Venkatachalam, Chief Advisor, TASMA.
Textile mills in the South have been badly affected by the imports of cheaper Chinese VSY in the domestic market because of the US-China trade dispute. This has begun to affect textile units around Karur, Dindigul and Pallipalayam regions in Tamil Nadu, he said.
US-China tariff war
“Due to the US-China tariff war going on strongly, China has started dumping its viscose staple yarn ( VSY) in India at a low price of ₹175 per kg. While the cost of production of domestic VSY is being maintained at ₹198, due to the uncompetitive fibre price, maintained by the monopoly manufacturer and supplier of viscose staple fibre (VSF) – the raw material for manufacturing VSY,” said the TASMA Chief Advisor.
Domestic VSY manufacturers cannot reduce the price of VSY below ₹198 even keeping it as their cost price. Cheap import of viscose fibre is not possible into the country in view of the quality control order. All domestic spinning mills manufacturing VSY depend on the monopoly manufacturer, which has priced VSF higher than the global market, he said.
“A difference of ₹13 per kg of yarn is not economically feasible for domestic mills. Unless the government comes forward to curb these cheap imports immediately, the domestic mills engaged in the production of VSY will face closures,” said Venkatachalam.
Published on April 15, 2025
