DGTR recommends anti-dumping duties on Chinese rayon yarn

The Directorate General of Trade Remedies (DGTR) has recommended the imposition of definitive anti-dumping duties on Viscose Rayon Filament Yarn (VFY) imported from China, indicating a rigorous federal intervention to stabilize India’s man-made fiber ecosystem.

The proposed duties range from $386 to $1,071 per metric ton, specifically targeting VFY above 75 deniers to exclude specialized spool-spun varieties. This regulatory move addresses a critical imbalance where dumped Chinese imports, often priced below the cost of production - have captured nearly 25 per cent of India’s 100,000-metric-ton annual demand. For domestic manufacturers like Grasim Industries and Cygnet Industries, the recommendation serves as a vital corrective measure against the $185 per kg dumping margin that has historically rendered Indian spinning units unremunerative.

Experts say, while the move may marginally raise short-term input costs for apparel clusters in Tiruppur and Ludhiana, the long-term benefit lies in domestic capacity utilization and reduced reliance on volatile cross-border supply chains. By aligning with India’s 2030 textile export targets, this duty framework encourages a transition toward high-tenacity, value-added synthetic blends. The Ministry of Finance is expected to provide final ratification shortly, ensuring a level playing field for the Rs 2,000-crore domestic VFY segment.

The Association of Man-Made Fibre Industry of India (AMFII) represents the commercial interests of primary producers in the viscose and synthetic filament sectors. It focuses on policy advocacy, market stabilization, and securing fair-trade environments for its members, which include major industrial conglomerates operating across India's key manufacturing hubs and export zones.