India has initiated an anti-dumping investigation into
imports of nylon-6 chips and granules originating in China and Russia,
signalling a significant trade defence move to protect domestic manufacturers
of synthetic textile raw materials. The probe was launched by the Directorate
General of Trade Remedies (DGTR), the investigative arm of the Ministry of
Commerce and Industry, following a formal complaint from Surat-based Gujarat
Polyfilms Pvt. Ltd., a leading producer of nylon-6 chips used extensively in synthetic
yarn and fabric production.
Gujarat Polyfilms alleged that imports of nylon-6 chips and
granules with a relative viscosity below 3 have surged in recent years, both in
absolute volumes and as a proportion of domestic consumption. This surge has
suppressed domestic prices, squeezed margins and eroded profitability for local
manufacturers in an industry where cost competitiveness is key. DGTR’s
preliminary assessment found prima facie evidence that imports from China and
Russia are being dumped in the Indian market at prices below their normal
value, and that there may be a causal link to material injury suffered by
domestic producers.
Nylon-6 chips are a critical intermediate for producing
synthetic fibres, especially for the textile sector’s polyester and industrial
yarns. India’s imports of nylon-6 have risen sharply in recent years,
increasing from approximately 277,370 tonnes valued at US$613.8 million in
fiscal 2023-24 to 335,242 tonnes worth US$730.6 million in 2024-25, according
to Commerce Ministry data. China’s share of total imports climbed above 54% in
FY25, underscoring its dominant role in feedstock supply.
Should the DGTR conclude that dumped imports have caused
material injury, it will recommend anti-dumping duties to offset the price
advantage of foreign supplies. The final decision on duty imposition rests with
the Ministry of Finance, typically taken within three months of the DGTR’s
recommendation. Trade experts caution that duties, while protecting domestic
producers, could raise input costs for downstream textile manufacturers who
rely on competitively priced nylon-6. Balanced policy responses will therefore
be critical in maintaining supply chain stability and India’s export
competitiveness under World Trade Organization rules.
Nylon-6 chips are a critical intermediate for producing synthetic fibres, especially for the textile sector’s polyester and industrial yarns. India’s imports of nylon-6 have risen sharply in recent years, increasing from approximately 277,370 tonnes valued at US$613.8 million in fiscal 2023-24 to 335,242 tonnes worth US$730.6 million in 2024-25, according to Commerce Ministry data. China’s share of total imports climbed above 54% in FY25, underscoring its dominant role in feedstock supply.
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