India’s prime textile hubs—Ludhiana, Surat, and Erode—have reported their struggle with the escalating influx of imports in man-made fibre (MMF) fabrics. This surge, coupled with extensive dumping of these fabrics, has cast a shadow on the $60 bn industry. The increasing imports of MMF fabric and the augmented domestic fibre prices have dealt a severe blow to local spinners, knitters, weavers, and processors, impeding their ability to compete on pricing. Manufacturers, catering to both domestic and export markets, have borne the brunt of this impact.
Ashok Jirawala, Head of the Federation of Gujarat Weavers Association, raised concerns over China’s fabric dumping practices, leading to unsold inventory and prompting plans to curtail production by 20 per cent.
R.K. Vij, the Secretary-General of the Polyester Textile Apparel Industry Association, highlighted a worrying trend—MMF fabric imports, subject to a 20 per cent duty, have doubled in the last three years, predominantly consisting of knitted synthetic fabrics.
Data shared by Vij revealed a stark increase in daily fabric imports from China—surging from 325 tonnes in 2019-2020 to a staggering 887 tonnes in the April-June quarter of the current fiscal year, with a significant drop in average value. Specifically, knitted or crocheted dyed synthetic fibre fabrics marked a strikingly low value.
The adverse impact of rising MMF fabric imports and elevated domestic fibre prices has crippled the local industry, resulting in manufacturers operating at only 70 per cent capacity, affecting both local and export-oriented endeavours.
Various industry voices, including B. Kandavel, organising Secretary of the Federation of Tamil Nadu Powerlooms Associations, underscored the detrimental effects on operations, citing closures due to GST-related issues and advocating for substantial refunds amounting to crores for relief to MMF weavers. This expected refund, estimated at Rs. 1,000 cr nationwide, stands to alleviate the financial strain on these weavers.
India’s prime textile hubs—Ludhiana, Surat, and Erode—have reported their struggle with the escalating influx of imports in man-made fibre (MMF) fabrics. This surge, coupled with extensive dumping of these fabrics, has cast a shadow on the $60 bn industry. The increasing imports of MMF fabric and the augmented domestic fibre prices have dealt a severe blow to local spinners, knitters, weavers, and processors, impeding their ability to compete on pricing. Manufacturers, catering to both domestic and export markets, have borne the brunt of this impact.
