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Sabarinath M
Mumbai, Mar 4: Domestic polyester staple fibre (PSF) manufacturers have decided to oppose dumping charges against purified terepthalic acid (PTA) imports from Japan by Reliance Industries. The anti-dumping cell of the commerce ministry is expected to begin a probe into the matter this week.
A clutch of players led by Indo Rama Synthetics and JCT will provide substantial evidence to the anti-dumping cell to back up their claim against dumping.
They feel that the Government had not given due consideration to their views before imposing anti-dumping duties on PTA imports from Taiwan, Korea and Indonesia last year. Around 15,000 tonnes of PTA are imported into the country every month.
"There is hardly any PTA imports coming from Japan. Hence, anti-dumping duties are not justified. Even the duties imposed on products from Taiwan, Indonesia and Korea have been done without proper investigation. We are expecting the notification for a probe into PTA imports from Japan this week," a top official with a leadingpolyester firm said, preferring anonymity.
PTA exports into India do not have an exclusive price. Taking into account the fact that there is only one producer for PTA in the country, the imposition of anti-dumping duties curtails price determination by market forces, said an official of the Association of Polyester Staple Fibre Manufactures (APSFM).
Moreover, value addition from paraxylene (raw material for PTA) to PTA is less than the value addition from PTA to PSF. Hence, duties are bound to adversely affect the industry.
PSF manufacturers are worried that concessions given in the form of duty differential in the recent budget will prove to be of no use if additional anti-dumping duties are imposed.
The budget has hiked the customs duty on PSF from 30 per cent to 35 per cent but chose to retain the duty on PTA at 25 per cent. This in effect means a 10 per cent duty difference which will boost the fortunes of the industry.
While global PSF prices are hovering in the range of $550-$580 per tonne,PTA prices are ruling between $320-$350. Total PTA consumption is 3 lakh tonnes per annum and PSF consumption is around 4.5 lakh tonnes per annum.
The consumption of PSF in India till 1984 was around 45,000 per annum but it rose to Rs 1,00,000 tonnes per annum due to reduction in excise duty. Rise in the cost of fibre intermediates has stagnated the consumption between 1988 to 1993.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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