The commerce ministry's arm DGTR has recommended to the finance ministry withdrawal of anti-dumping duty on viscose staple fibre (VSF), used in textiles industry, imported from China and Indonesia, a move hailed by apparel exporters' body AEPC.

The Association of Man Made Fibre Industry of India had requested the Directorate General of Trade Remedies (DGTR) for continuation of anti-dumping duty. It was imposed first in 2016, and then extended till October 2021.

"The authority considers it appropriate to recommend withdrawal of anti-dumping duty on imports," the DGTR has said in a notification.

It has concluded in its probe that there is a likelihood of continuation of dumping of viscose staple fibre from China and Indonesia, however, "the likelihood of recurrence of injury to the domestic industry is not strong enough to warrant continuation of duties beyond 11 years."

Based on objective examination, it was concluded that there is no justification for recommending continuation of anti-dumping duty in the present case, it added.

Welcoming the decision, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said it will prove to be a key milestone in India''s apparel history.

"The decision will help the manmade fibre (MMF) sector finally take off. Amazing future awaits the Indian apparel sector," Sakthivel said.

In January, AEPC along with other organisations in the VSF value chain had appealed to the government for the removal of the duty on this fibre to address the VSF spun yarn availability and price issues in order to prevent job losses and stoppage of production across the VSF textile value chain.

"The decision will help the MMF segment, which both industry and government have identified as the sunrise sector for increasing the share of India in global apparel trade.

"With quality fabric at the right price in place, it will finally give wings to the proposed Production Linked Incentive (PLI) scheme for the MMF segment," he added.