The Indian Spinners Association (ISA) has urged the government to end anti-dumping duty imposed on imports of viscose staple fibre (VSF) because the levy could hit domestic textile manufacturers.

The ISA’s demand has come amid the Directorate General of Anti-Dumping & Allied Duties, under the commerce ministry, initiating a sunset review investigation for assessing the need for continuation of anti-dumping duty on viscose staple fibre (VSF) imported from Indonesia and China.

In a statement, the ISA said that continuation of the duty on the fibre will have a “deleterious effect” on the textile sector, which is already reeling under high cost of production and sagging export demand.

VSF is one of the major inputs for manufacturing of man-made fibre yarn in India and is mostly used for the manufacture of fabrics made of poly-viscose and viscose yarn.

The ISA has also requested the ministries of textiles, commerce and central board of excise and customs for removal of the duty to ensure fair competition and make available the viscose at international prices in India.

It also alleged that anti-dumping duty is being used by the domestic VSF manufacturing industry as a shield to cover its inefficiencies and inadequacies in a competitive environment.