Pallipalayam, a small town near erosion in Tamil Nadu, finds it in the middle of the American-China commercial war.
The city is a significant center in India to produce spinning viscous thread (VSY) that is used in woven and woven fabrics. This textile cluster has more than 60 rotating factories that manufacture only viscose thread and is now advertising affected by the commercial war triggered by the administration of the United States.
Textile manufacturers in the city say that the Chinese have begun to overturned spinning at a cheaper pace and, in turn, affected the production of thread in Pallipalayam. Sources said Business line That the spill is happening in the main ports, including Kandla and Mundra.
In general, the basic viscose fiber (VSF) is a man -made fiber that is turned in VSY. About 80 percent of VSF produced in India is consumed by the Mills in Pallipalayam to make the threads, a source said.
Throughout India, factories consume about 2,200 tons or VSF in one day and consumed only 2,000 tons in Pallipalayam, he added. “In India, our people, the specialist in VSY’s production with a market share of almost 85 percent,” he said.
In Pallipalayam there are almost 60 spinning factories of VSY only. Ramesh Natrajan, Executive Director of AGT Mills in Pallipalayam and president of the Indian Association of Manufacturers of Manmade Manmade, said that the cost of manufacturing is ₹ 205 per kg and sells around ₹ 198 per kg for weavers and weavers in places like Erode, Palladam, Tangupur, Delhi and Punjab to make manufactures.
“However, the Chinese are throwing ₹ 185 per kg that also or poor quality after the commercial war began with the US. Natarajan urged the center to intervene when putting the anti -dumping tax in VSY of China.
K Venkatachalam, chief advisor of the Tamil Nadu Spinning Mills association, last week sought the intervention of textile and trade ministijs to avoid the flood of the cheapest VSY imports in China. The industry urges the rapid government intervention to protect the ecosystem from unfair imports.
The textile industry is closely observing rates developments in the midst of concerns about China’s possible spill, said Prabhu Dhaminharan, coordinator of the Texpreneurs India Federation (ITF) based in Coimbatore. Historically, when facing export obstacles with the United States or EU, China has redirected excess textile goods to Asian markets such as India. Even before the last American tariffs, China’s textile and clothing exports fell 4.5 percent in January to February 2025, he added.
In recent times, the spill in woven and thread fabrics/polyester fabrics, braking through the action of the timely government was in a 43 percent drop in knitted imports this January. Now, the approach changes to dumping or viscose thread, a key segment with hundreds of rotating factories already under stress. Imports without control could severely affect this sector.
Posted on April 21, 2025