To reduce imports, the Indian textile industry requests that the Minimum Input Price (MIP) be extended for all knitted fabrics
India's textile industry is advocating for an extension of the minimum import price (MIP) across all HS lines under Chapter 60, which includes various knitted and crocheted fabrics. The current MIP, applied to five specific HS lines, is set to expire on September 15, 2024, prompting industry stakeholders to call for its broader application to protect domestic producers from a surge in imports.
In a letter addressed to the Ministry of Textiles, industry organizations and numerous business leaders expressed concern that imports of knitted fabrics have not decreased significantly, even with the existing MIP on certain fabric types. The Ministry had previously sought input on which specific HS lines at the 6/8-digit level should have an extended or new MIP.
R K Vij, Emeritus President of the Textile Association of India (TAI) and Secretary General of the Polyester Textile and Apparel Industry Association (PTAIA), emphasized the detrimental impact of fabric dumping on the domestic market. “The selective MIP on five HS lines has not been effective, as imports surged in other lines. The industry unanimously supports imposing MIP on the entire Chapter 60, which covers all knitted fabrics.”
The Confederation of Indian Textile Industry (CITI) echoed these concerns in a letter to the Ministry, noting that since the MIP of $3.5 per kg was introduced, imports of other fabric varieties under dif
ferent HSN codes have increased at lower prices. The fabric import data from April-June 2024 compared to the same period in 2023 highlights this issue.
Industry feedback suggests that previously, due to a uniform duty structure across all knitted fabric categories, significant quantities of fabric were misclassified under Chapter 6006, which should have been categorized under other chapters. Currently, unit import prices for fabrics, particularly under HSN 6001 and 6005, are unsustainable for domestic producers and are harming the local industry. To safeguard the domestic market, the industry is urging the government to extend the MIP beyond September 15, 2024, and to apply the $3.5 per kg MIP to all knitted fabric categories under HSN 6001, 6002, 6003, 6004, and 6005.
Support for this measure has also come from various industry bodies, including the North India Textile Mills Association (NITMA), Southern India Mills Association (SIMA), Federation of Surat Textile Traders Association, and Punjab Dyers Association. Many business leaders are calling for stricter controls on fabric imports, arguing that the influx of cheaper fabrics has marginalized the domestic market, especially at a time when global demand for textiles from developed markets is sluggish.
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