CITI requests for raw material availability at internationally competitive prices

The Ministry of Textiles has implemented important policy measures, such as setting a Minimum Import Price (MIP) of USD 3.5/kg on the five HS lines of MMF Knitted Fabrics, which is effective until September 15, 2024. The Confederation of Indian Textile Industry (CITI) also appreciates that the Ministry of Textiles has enabled provisions for exemptions from the mandatory Quality Control Orders (QCOs) for inputs imported by Advance Authorization holders, EoU, and SEZ units.

These steps are anticipated to give the Indian MMF business instant respite and to spark expansion within the industry, setting it up for long-term success. When combined with numerous other growth-promoting factors, these legislative initiatives should help the Indian textile sector reach its ambitious 2030 objective of US$ 350 billion.

To improve the cost competitiveness of the cotton value chain, below given policy recommendations are requested:

* Cotton productivity enhancement with a focus on specialized seed varieties like HTBt cotton seeds.

Towards MMF textile’s growth, the Government may consider the following policy measures to enhance its growth:

* Exempting fibers and yarns not available domestically from the scope of Quality Control Orders (QCOs) to ensure access to essential raw materials without regulatory issues.

Enable provisions for exempting inputs imported by holders of Advance Authorization, EoUs, and SEZ units from the required QCOs issued by the Department of Chemicals and Petrochemicals (for polyester fiber, filament, and yarn), similar to the exemption for QCOs given by the Ministry of Textiles.

* Establishing a committee to ensure the availability of all types of raw materials (fibre/yarns) with periodic reviews of the emerging requirements of specialized fibre/yarn categories which may be exempted from the scope of QCOs due to gap in supply / demand /price.

* Ensuring smooth supply of all raw materials at internationally competitive prices.

* Lower standard input and output norms (SION) for cotton blended with MMF and VSF

“The Indian textile industry possesses the necessary skills and capabilities to expand. According to Mr. Rakesh Mehra, Chairman of CITI, “the availability of raw materials at prices that are competitive internationally can address the current stagnation in the industry and help in its growth, especially the sunrise sectors like technical textiles.”

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