The Hindu : Business : Dumping probe against Chinese silk fabrics

Online edition of India's National Newspaper
Thursday, Jun 02, 2005

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Dumping probe against Chinese silk fabrics

Decline in Indian producers' profitability, market share cited

REARING FOR PROSPERITY: A sericulturist busy arranging silk worms for rearing to get cocoons.

NEW DELHI: India has initiated anti-dumping investigations against import of silk fabrics from China.

The Directorate General of Anti-dumping and Allied Duties (DGAD) observed that there was `prima facie' evidence to show causal link between the dumped imports of Chinese silk fabrics of weight 20-100 gm per metre and injury caused to the domestic industry.

Material injury

The authority pointed out that parameters such as significant decline in production, decline in capacity utilisation, closure of several power looms, decline in sales, drop in employment, loss of market share in demand, decline in profitability and losses to domestic industry prima facie indicated that it had suffered material injury on account of dumping.

It noted that the share of imports from China had increased in absolute terms as well as in relation to the demand of the product in India.

Silk Board, a complainant

Silk fabric is also produced on handlooms in India, but for the purpose of this investigation only the silk produced on powerlooms is being considered.

The period of investigation of the enquiry is from April 1, 2003 to September 30, 2004.

The application alleging dumping of Chinese silk was filed by the Central Silk Board along with Mysore Power Loom Silk Manufacturers' cooperative society, Karnataka Weavers Federation, Silk Trade Association, Varanasi, and Pure Silk Weavers Association, Surat. — PTI

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