Punjab Dryers Association calls for action against fabric dumping from China

The Punjab Dryers Association (PDA), a prominent textile industry body, has urged the Indian government to take immediate steps to curb the import of allegedly undervalued fabrics from China. This move comes amidst concerns that the influx of cheap Chinese fabrics is stifling the growth of the domestic textile sector and causing job losses.

PDA representatives met with officials from the Union ministries of textiles, industries, and commerce to highlight their concerns. They argued that Chinese fabrics, with a market value of Rs 400 per kg, are being declared at significantly lower prices, around Rs 40-50 per kg, at the time of import. This alleged undervaluation, they claim, creates an uneven playing field and leads to unfair competition for domestic textile producers. Bobby Jindal, a representative of the PDA, emphasized the detrimental effects of this practice on the Indian textile industry. He pointed out that the dumping of cheap fabrics leads to:

Job losses as domestic producers struggle to compete with the lower prices of imported fabrics, they are forced to cut costs, often resulting in job reductions. The influx of cheaper alternatives reduces the demand for domestically produced fabrics, leading to decreased revenue for Indian textile companies. Due to the decline in demand and revenue, domestic manufacturers may be forced to scale back production, further impacting the industry's overall capacity.

To address these concerns, the PDA is advocating for the implementation of a minimum import price (MIP) on Chinese fabric imports. An MIP would set a floor price below which the fabrics cannot be imported, ensuring a fairer competition for domestic producers and protecting them from the adverse effects of alleged dumping practices.

The issue of fabric dumping from China is not unique to the Indian textile industry. Several other countries have also raised concerns about similar practices, highlighting the potential for unfair trade practices to distort global markets and harm domestic industries.

The Indian government is yet to respond to the specific demands of the PDA. However, the issue of fabric dumping is likely to be part of ongoing discussions between India and China regarding trade relations. The Indian government may consider various options, including negotiations with China, exploring legal avenues through the World Trade Organization (WTO), or implementing trade defense measures like anti-dumping duties, to address the concerns raised by the domestic textile industry.