Big Setback to China and Korea! DGTR recommends imposing anti-dumping duty on sodium hydrosulphite – check how it helps THESE textile and paper shares

In apparent good news for domestic textiles and paper companies and big setback to Korea and China, the Directorate General of Trade Remedies (DGTR) has recommended imposition of anti-dumping duty on sodium hydrosulphite, a notification has been issued for the same, Zee Business Special Correspondent Anurag Shah reported.

According to Shah, an investigation was announced on 16 September 2020 for the period April 1, 2019, and March 31, 2020. And, eventually, the DGTR, which falls under the Ministry of Commerce and Industry, had recommended imposing anti-dumping duty on sodium hydrosulphite imported from China and Korea, the special correspondent tells.

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Sodium hydrosulphite is generally used in removing colour from textile and paper products, it’s also considered as anti-bleaching, as bleach couldn’t be used on sensitive textile and paper and this chemical is an alternative option to make any colourful textile product in white, Shah further adds.

This is positive news for textile and paper companies such as Welspun India, Vardhman Textiles and Andhra Paper. The first two companies’ stocks are trading marginally negative; however, Andhra Paper is trading positive up over 1 per cent.

वेलस्पन इंडिया, वर्धमान टेक्सटाइल, आंध्रा पेपर, एवरेस्ट ऑर्गेनिक्स के लिए अच्छी खबर...

DGTR ने सोडियम हाइड्रोसल्फाइट पर एंटी-डंपिंग ड्यूटी लगाने की सिफारिश की, नोटिफिकेशन जारी#SodiumHydrosulfite @AnilSinghvi_ @anuragshah_ pic.twitter.com/Qpkz56ZU3X

— Zee Business (@ZeeBusiness) September 16, 2021

Being bullish on the whole sector, the market analyst Vikas Sethi suggests to hold the good textile stocks such as Ambika Cotton, Exports, Monte Carlo, Dollar Industries, Lux Industries or for instance Welspun India and Vardhman Textiles.

He adds, the government’s recent production linked incentive scheme would play out quite well for the sector and has also had a better opportunity for the sector to grow going forward. 

Moreover, the China Plus One category, which is a business strategy to avoid investing only in China and diversify the business into other countries, is also likely to help the immediate neighbour India in the future, the market analyst Sethi mentions.