There is noproduct similarity per se, as Indian companies primarily export commodities in contrast to the European players' focus on value-added items. Moreover, price comparison is irrelevant as sales and profitability of European companies, by and large, remain unaffected, said industry sources.Incidentally, despite dumping allegations, texturised yarn exports during April-December to the European Union were higher at 12,000 tonnes as compared with 10,000 tonnes during the same period last year.

However, during April-December 1998, price was lower at $18 million against $21.45 million during the same period last year. Total PTY exports stood at 19,600 tonnes. European manufacturers suffer from certain cost disadvantages due to inherent inadequacies in the system. Those companies which import raw material at cheaper rates enjoy a cost advantange. Moreover, some European companies still use the relatively costlier raw material dimethyl terepthlate (DMT), said Dhawan.

CIRFS lodged a formal complaint with the EC inAugust last year alleging that Indian companies were dumping texurised yarns. Acting on the complaint, EC officials came down to India and inspected the data of sample companies in November last year. Leading texturised yarn exporters include RIL, Indo Rama Synthetics and Modern Petrofils account for nearly 60 per cent of the total exports. There are around 1800 texurisng machines in India, of which 350 are operated by companies in the organised sector.