The Government of India has decided to cancel the imposition of Anti-Dumping Duties (BMAD) for Viscose Spun Yarn (VSY) or synthetic yarn products. The decision is contained in Office Memorandum F. No. 354/154/2020 published on 6 April 2021.

This decision provides opportunities for textile exports to India to be more widely open. With the publication of this decision, the recommendation of India's Directorate General Trade Remedies (DGTR) final decision which was published on 30 December 2020 is declared not to be implemented. This means that Indonesian exporters are not subject to BMAD of USD 0.25/kg to US$ 0.44 per kg.

"This cancellation opens an opportunity to increase VSY exports to India even more. This is good news, especially for the textile industry as one of Indonesia's mainstay industries. This cancellation is also a supporting factor for economic recovery which is one of the government's focuses during the pandemic," said the Minister. Muhammad Lutfi trading in Jakarta, Friday (25/6/2021).

Acting Director General of Foreign Trade Indrasari Wisnu Wardhana explained that Indonesia is one of the main players for VSY products in the world. He said that with the cancellation of the BMAD, Indonesia would not lose its momentum to maintain and even increase exports of VSY products, especially to India. "In the future, the Government will continue to be committed to overcoming various barriers to market access for Indonesian export products," said Wisnu.

Director of Trade Security Pradnyawati explained that VSY products already have a fairly large market in India. Indonesia is the second largest export country to India after China. Based on data from the Central Statistics Agency (BPS), Indonesia's VSY export performance to India reached the highest value in 2019 of USD 49.3 million. This export value had dropped to USD32.6 million in 2020.

Meanwhile, for the January-April 2021 period, the value of Indonesia's VSY exports to India was recorded at US$11.92 million, down 0.72 percent compared to the same period in 2020 which amounted to US$12 million.

"The cancellation of this recommendation for the imposition of BMAD is rarely carried out by India. For that, we really appreciate the decision of the Indian government. After this cancellation, we hope that exporters or producers of Indonesian VSY products will be able to boost exports to India," concluded Pradnyawati.