Indonesian products have been blocked by the Government of India for 11 consecutive years, namely viscose staple fiber (VSF) products. India accused Indonesia of anti-dumping its products to enter the Indian market.

"In the past, he had a domestic surplus, so when there was an import from Indonesia he was accused of dumping. Now, spinning investment in India is massive, and domestic producers cannot keep up with the demand for raw materials, on the other hand, we also invest in viscose," he said. Secretary General of the Indonesian Filament Yarn and Fiber Association (APSyFI) Redma Gita Wirawasta.

As a result, when India needs more raw materials for textile production, the anti-dumping import duty (BMAD) for viscose fiber that has been in effect so far is revoked. In contrast to 11 years ago where the Indian textile industry was not as big as it is today, domestic viscose fiber absorption is still low. This is because they are worried about being competed, the Indian government takes an import protection policy in the form of BMAD.

"11 years ago our viscose price there was expensive and India was a bit tight, so we got dumped, paid anti-dumping import duties. Then, he had an additional trade fee and had to prove that it was produced at the factory or not, because it could be transhipment. India more stringent customs procedures," said Redma.

After the price of Indonesian viscose fiber to enter the Indian market becomes cheaper, the opportunity to get a bigger market is wide open. The reason is, the price of Indonesian products is now cheaper.

"In terms of competitive prices, so far our volume to India has been suppressed because there is dumping. But because they need them to continue to import, they also import from everywhere. If the BMAD is revoked we can take over the Indian market from other countries because the price is cheaper, the increase can reach 15 percent. But domestically, we still need viscose. If there is any remaining, then export," he explained.

The imposition of BMAD for Indonesian VSF products in India has been going on since July 26, 2010 with the amount between 0.103 USD/kg-0.512 USD/kg. Minister of Trade Muhammad Lutfi welcomed the decision of India's Directorate General of Trade Remedies (DGTR) to stop the imposition of BMAD on this product.

"After 11 years, Indonesia has finally managed to get away from the imposition of BMAD on VSF products by the Indian authorities. After a sunset review, there was no strong enough basis for DGTR to continue imposing BMAD on Indonesian VSF products," explained Lutfi.