The Hindu Business Line : Dumping duty on raw silk imports extended

Chennai, Jan. 3 The Centre has extended the anti-dumping duty on mulberry raw silk imports till the end of this year, pending completion of a review of the measures imposed in July 2003.

Mulberry raw silk is mainly imported from China, which has been urging India to lift the anti-dumping duty. On July 10, 2003, the Centre fixed a base price of $27.98 a kg for import of mulberry raw silk (not thrown). Imports below the price would attract duty equivalent to the amount that was below the base price.

“The Central Silk Board and Karnataka Silk Reelers Association had sought an extension by five years of the anti-dumping duty. The petition is under consideration by the Designated Authority in the Commerce Ministry and as a part of setting the process in motion, the duty has been extended, subject to the investigation,” a Silk Board spokesperson told Business Line.

“Even Tamil Nadu, Andhra Pradesh, Karnataka and West Bengal had sought extension of the anti-dumping duty as there is a general feeling that farmers need protection for some more time. There is every possibility of dumping taking place again,” the spokesperson said.

Imports double

Despite the imposition of anti-dumping duty, mulberry raw silk imports more than doubled during April-July of the current fiscal. Imports totalled 590.5 tonnes valued at Rs 588.20 crore against 277.4 tonnes valued at Rs 347.60 crore during the corresponding period a year-ago.

But the commodity’s imports during 2006-07 fell to 3,452 tonnes valued at Rs 428 crore against 4,677 tonnes valued at Rs 458 crore in 2005-06.

During November, imported mulberry raw silk ruled at Rs 1,165-1,185 a kg in the Varanasi market, while in Karnataka domestic mulberry silk fetched an average Rs 1,083 a kg against Rs 1,237 a year ago.

During April-November, domestic mulberry raw silk averaged at Rs 1,149 a kg against Rs 1,253 a year ago.

In its final findings in July 2003, the Designated Authority ruled that the quantum of imports from China had increased in absolute terms and in relation to consumption in India. The market share of domestic silk reelers had gone down even as imports increased.

It said China had quoted very low prices to Indian customers, forcing the industry to quote even lower or lose sales volume. This led to many units downing shutters. During 2002-03, imports touched 7,000 tonnes. Then, domestic manufacturers switched over to Chinese silk due to its abundant availability at lower prices. The domestic mulberry silk prices then crashed to below Rs 1,000 a kg from Rs 1,500.

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