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Raw yarn import duty, dumping hit silk units
Nayeem S Quadri / Surat August 30, 2003
Anti-dumping duty on imported raw silk yarn and large scale imports of pure silk fabrics from China are hitting the pure silk weaving industry of the country.

 
An anti-dumping duty of $27.97 per kg is levied on raw silk yarn of 2A grade and below.

 
“It seems that, this is done at the initiative of the Central Silk Board. It is also not understood whether the Central Silk Board is interested only in sericulture or they are also interested in promoting the pure silk fabric industry,” said the Federation of Indian Art Silk Weaving Industry chairman Arunbhai Zariwala.

 
“The government has fixed the floor price of imported pure silk yarn at $28 and imposed an anti-dumping duty on imported raw silk yarn. We also face unhealthy competition from imported Chinese silk fabrics,” said Bharat Gandhi of Batsons Textiles, a leading pure silk weaver in Surat.

 
According to him, the large scale import of pure silk fabrics, mainly from China, is crippling the indigenous pure silk fabric industry. The Central Silk Board is under the administrative control of the Union textile ministry.

 
Zariwala said both the Central Silk Board and the textiles ministry should take an impartial view on the issue.

 
According to Zariwala, raw silk importers also face harassment by the customs department.

 
Though the 3A/4A grade silk is imported with the certification of the internationally recognised organisation CIQ, the department insists on rechecking the material.

 
Industry sources say that rechecking of the grade is a long-time process and also required unwanted expenditure.

 
“The customs department should recognise CIQ for clearance purpose as it is recognised globally. Random testing of samples should also be done to save time. The department is also asking for a 150 per cent bank guarantee for releasing goods, which is very high,” Zariwala said.

 
Lack of facilities to test grades of silk is also delaying the process. At present, testing of grades of pure silk is done only at the Central Silk Board at Bangalore.

 
“I have urged the government to set up facilities for testing silk grades at the Laboratories of the Textiles Committee, the Surat-based Man Made Textile Research Association and the Mumbai-based Silk and Art Silk Mills Research Association,” he said.

 
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