The government has initiated an investigation under the supervision of Directorate General of Anti-Dumping and Allied Duties into the complaints made by domestic synthetic and rayon or man-made fabric (MMF) producers against import of undervalued Chinese fabrics.

“The government has started an anti-subsidy investigation for MMF fabric from China, which has been flagged by the industry,” Anil Rajvanshi, chairman of Synthetic & Rayon Textile Export Promotion Council (SRTEPC) said in Surat recently

“We have filed an anti-subsidy application. Representatives from the government will visit companies in Surat to get the cost data of the production. Thus, we expect that the Chinese fabric imports will attract around 25 per cent anti-subsidy duty,” Rajvanshi said.

The import of Chinese fabrics is around 7 per cent of the total volume of fabrics manufactured in India, Rajvanshi said, alleging that MMF is imported by undervaluing the prices in the range of Rs 6 to Rs 8 per metre.

The SRTEPC chairman said they had information around 200 containers of fabrics were being imported from China every day. “Chinese exporters were taking the benefit of under-invoicing to destabilize Indian manufacturers.”

In recent months MMF manufacturers in Surat were facing the brunt of import of undervalued fabrics from China. Around half of power loom weaving machines have been shut down, rendering over two lakh workers jobless. The production of polyester fabric has reduced from 4 crore metre per day to around 1.80 crore metre per day.