Cotton yarn exporting companies from India, Pakistan and Indonesia have to file their responses before April 6, within the mandatory 37 days, in the anti-dumping investigation initiated by Korea Trade Commission against the three countries. Highly-placed sources told The Financial Express that the extension was sought on technical grounds.

``The complaint is filed in Korean language and this has to be translated. One company being investigated into is in quake-hit Gujarat. There are some holidays too coming up in the first week of April,'' the sources said adding India has also taken objection to the unilateral selection of the companies to be probed.

Korea has identified five Indian companies for investigation. The Spinners and Weavers Association of Korea (SWAK) has alleged that these companies are dumping combed cotton yarn in Korea. In its petition dated December 2000, the association has also claimed that it has evidence to prove the allegation and resultant injury to the domestic industry. On the basis of the allegation, the Korean government has started an investigation in accordance with Article 4-3 of the Presidential Decree of Korean Customs Act (initiation of dumping, material injury etc).

According to an official source in the Ministry of Textiles in India, steps are on to hire a consultant for helping the exporters.

A law firm is also being engaged to fight the case. The five Indian companies identified are Nahar Spinning Mills Ltd (Ludhiana), Euro Intl Pte Ltd (Singapore-based exporter of Indian cotton yarn), TT Ltd and Shamken Spinners Ltd (both Delhi based) and Tai Chonbang Textile Ltd (Ahmedabad).The issue demands serious consideration as for the last two years Korean Republic has been the largest importer of cotton yarn of Indian origin. Cotton yarn exports in the year 2000 to Korea is valued at Rs 943.25 crore and that in 1999 at Rs 990.58 crore.Incidentally, the anti-dumping investigation by Korea was notified days before India won the case against definitive anti-dumping duties on cottonbed-linen exports imposed by the European Commission (EC). Korea is investigating Indian cotton yarn exports to that country between January and December, 2000.