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India revokes antidumping duties on synthetic yarn
25 Jun 2021
Indonesia sees bigger chance to export synthetic yarn to India after the South Asian country recently revoked antidumping duties on viscose spun yarn (VSY).
This is definitely a good news for Indonesian textile business players that are now struggling amid the Covid-19 pandemic.
India’s decision was stipulated on the Office Memorandum F. No. 354/154/2020 issued on April 6, 2021. The decision annuls an earlier decision by India’s Directorate General of Trade Remedies (DGTR) on Dec. 30, 2020.
The revocation means the antidumping duties on synthetic yarn, ranging from US$0.25 to $0.44 per kilogram, is no longer applied on Indonesian product.
“The decision opens bigger chance to increase export of synthetic yarn to India. This is a good news mainly for the textile industry, which so far has been a major industry in Indonesia,” Trade Minister M. Lutfi said in a press statement.
“This will help Indonesia speed up economic recovery amid the Covid-19 pandemic,” he added.
The case began when Indian authority launched investigation in January 2020 into viscose spun yarn products from China, Indonesia and Vietnam.
Viscose spun yarn is synthetic yarn produced from wood pulp or cotton pulp that is used for the weaving of cloth and carpet. Indonesia is one of the world’s largest producers of viscose spun yarn.
“With this decision, Indonesia can increase export of VSY mainly to India. The government is committed to solving every export barrier facing Indonesian business players,” said Trade Ministry acting director general of foreign trade Indrasari Wisnu Wardhana.
According to Trade Ministry trade security director Pradnyawati, Indonesia is the second largest supplier of VSY product to India after China.
Statistics Indonesia (BPS) data shows Indonesia’s VSY export to India stood at US$49.3 million in 2019. It decreased to $32.6 million in 2020.
Meanwhile, in January-April 2021, Indonesia’s VSY export to India was recorded at $11.92 million, decreasing 0.72 percent compared to the same period of 2020 at $12 million.
“We appreciate India’s decision. We hope Indonesia can boost export of VSY to India,” said Pradnyawati.
By Madeinindonesia.com