INDIA: Anti dumping duty on Chinese silk

China is the world's largest producer of silk and India is its largest market. The problem is that India is also a major manufacturer of silk. Indian silk producers claim that the price of Chinese silk in India is so low that they cannot compete. They say the Chinese must be "dumping", or selling their products at below what they cost to produce.

This may come as a succour for domestic raw silk producers. The Centre has quietly re-imposed the anti-dumping duty on Chinese silk yarn (raw silk) imports for one year. Currently, the landed price of Chinese raw silk is around $27.97 per kg. The anti-dumping duty is levied if the landed price is lower than the domestic price.

China is now aggressively expanding into these markets and meeting resistance from governments trying to protect their domestic industries. China is seen as a threat by other developing nations because significant industries in these countries compete directly with Chinese firms. In the largest anti-dumping investigation to date launched by one developing country against another, India is currently accusing China of dumping silk and satin into the Indian market. India is the only country which is producing five different types of silk.

While mulberry silk accounts for nearly 90% of the output, vanya silks (wild silks) account for the balance. Prominent among the vanya silks are eri, muga and tassar. Oak tassar which is another variety of tassar silk is growing in the upper reaches notably in Uttarkhand.

China is seen as a threat by other developing nations because significant industries in these countries compete directly with Chinese firms.

Source: bharattextile.com