Surat: Power loom weavers and traders in the country’s largest man-made fabric (MMF) are elated over central government imposing 20 per cent duty on polyester fabric imported from China and other countries.In a notification issued by the ministry of finance, department of revenue, on July 16, a range of polyester fabrics imported into the country will attract 20 per cent customs duty as against 10 per cent.From last one year, the power loom sector has made a series of representation to the textile ministry and the ministry of commerce, Government of India, to impose higher anti-dumping duty on import of under-invoiced polyester fabric from China. The import of heavily under-invoiced fabric from China had crossed Rs 5,500 crore in last one year. The imported fabrics are heavily under-invoiced and could be worth Rs 10,000 crore.Industry sources said the government of China provides heavy subsidy to the textiles industry of China, which ultimately reduces the production cost per unit.President of Pandesara Weavers’ Cooperative Society Limited Ashish Gujarati said, “The quality of fabrics imported from China are man-made and of synthetic fibre as cotton is expensive in China compared to India. This fabric has assumed significance as it has caused irreparable damage to India’s small and medium-sized enterprises (SMEs), particularly in Surat. The imported fabrics are heavily under-invoiced and as such it would be worth Rs 8,000 to Rs 10,000 crore.”Gujarati stated that India despite having production capacity has lost production leading to massive unemployment. Import of fabric are taking place at unit price of Rs 5 to Rs 15 per metre. This price is unbelievably low for any kind of fabric as a simple handkerchief (10 handkerchiefs are made out of one square metre) cost more than Rs 5 per piece in the market.“Following the imposition of 20 per cent duty, the fabrics imported from China will be costlier and traders and weavers will have a competitive edge,” Gujarati added.Secretary of Federation of Surat Textile Traders’ Association (FOSTTA) Champalal Bothra said, “In the last few months, the import of fabrics had increased by almost 30 per cent compared to last year. Post-GST (goods and service tax), the Chinese fabric attracted only 10 per cent duty. Now, the imposition of 20 per cent duty will provide us level-playing field.”

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