Indian Textile Sector Pushes for Reassessment of Quality Control Orders
2024-08-06 12:31:20
The Indian Textile Industry Advocates for Reevaluating Quality Control Orders
The Indian textile industry is calling on the government to reconsider the quality control orders (QCOs) imposed on upstream raw material products in the non-cotton sector. These QCOs, implemented over the last couple of years, were designed to ensure the import of quality raw materials in line with Bureau of Indian Standards (BIS) regulations.
However, the downstream industry claims that these QCOs have had a detrimental effect, promoting monopolistic practices by a few producers of polyester and viscose fibers, along with their raw materials and yarn. The industry has appealed to Union Finance Minister Nirmala Sitharaman to reevaluate the QCOs to ensure the availability of raw materials at globally competitive prices and quality.
Recently, the Supreme Court stayed the Gujarat High Court's order that reinstated anti-dumping duties on Purified Terephthalic Acid (PTA) imported from South Korea and Thailand.
Ashish Gujarati, president of the Surat-based Pandesara Weavers Cooperative Society Limited, expressed in a letter to Finance Minister Sitharaman, “The government showed its sensitivity towards the downstream industry by challenging the Gujarat HC order in the Supreme Court. This court order will directly benefit fiber and yarn manufacturers and indirectly benefit the fabric and garment industry. It demonstrates that the government is very much concerned for the downstream and fabric industries. We are confident the government will take a positive approach if a sunset review begins.”
Bharat Gandhi, chairman of the Federation of Indian Art Silk Weaving Industry (FIASWI), stated in a separate letter that QCOs cannot ensure quality. He emphasized that these orders have been disastrous for the industry, granting monopolistic advantages to a few upstream producers. The non-cotton fiber, yarn, and fabric industry is struggling to remain competitive in the global market due to dependency on local suppliers who have raised raw material prices because of restricted global supply through the QCOs. The industry maintains that QCOs fail to ensure a consistent supply of raw materials, rendering the downstream industry uncompetitive in the global textiles and garment market.
