The textile industries in Tamil Nadu’s Coimbatore, Tirupur, and Erode regions have urged the Union Government to revoke the Quality Control Order (QCO) on viscose staple fibre (VSF) and viscose spun yarn (VSY).
The industry highlights that viscose-based fibres are second only to cotton as critical raw materials in the textile sector. Tamil Nadu’s powerloom clusters weave over 70% of the viscose yarn produced by India’s more than 80 spinning mills.
The QCO, implemented on imported VSF since March 2023, has made it difficult to procure competitively priced viscose fibres from countries like China, Thailand, and Indonesia, due to delays in BIS licensing. This has forced Indian spinners to buy from a single domestic monopoly, raising input costs and reducing flexibility. Under the FTA, imported VSF is ₹25/kg cheaper than domestic VSF, but this advantage is nullified by the QCO.
The resulting consequences include production slowdowns, unit closures, and the sale of machinery as scrap, severely impacting the cost structure for spinners and weavers.
Further pressure emerged with a notification dated September 26, 2024, proposing to include viscose spun yarn (VSY) under the QCO. The industry warns this will trigger supply disruptions, price hikes, and job losses, especially amid ongoing raw material challenges.
To support textile exports, job creation, and the revival of MSMEs, the government is being urged to ensure raw material availability.
The industry expresses deep concern over the crisis in Tamil Nadu’s weaving sector and has called on the ministry to act swiftly and empathetically, to protect the livelihoods of millions dependent on this vital value chain.