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. Additionally, over 15 million new employment and approximately $100 billion in investments are anticipated.
But in order to meet such production targets, it will be imperative to guarantee a sufficient supply of all raw materials, including cotton and MMF, at costs that are competitive worldwide.
In order to enhance the cotton value chain’s cost competitiveness, the following policy recommendations are kindly requested:
Elimination of import taxes on all cotton kinds, including waste cotton. Improvement of cotton productivity with an emphasis on specialised seed variants such as HTBt cotton seeds.
The government may take into consideration the following policy steps to support the growth of MMF textile:
Removing fibres and yarns that are unavailable locally from the purview of Quality Control Orders (QCOs) in order to guarantee regulatory-issue-free access to vital raw materials. Forming a committee to oversee the availability of all raw materials (yarns and fibres), with regular reviews of the evolving needs of specialised categories of yarns and fibres that might be exempt from QCOs owing to gaps in price, supply, or demand. Ensuring the uninterrupted supply of all raw materials at costs that are competitive worldwide. Lower MMF and VSF blended cotton standard input and output norms (SION). In order to prevent capital blockage, address the GST duty inversion in the MMF value chain.
To encourage sustainable products, special Harmonised System of Nomenclature (HSN) designations for products made from recycled MMF should be announced. To lower the logistical costs associated with obtaining such raw materials, expand the viscose production hub to states like Tamil Nadu and other textile manufacturing clusters. Enable arrangements by AA, SEZ, and EoU units for the import of inputs subject to statutory QCOs for intermediate supply as well. Currently, only physical exports are eligible for these concessions.
“Indian textile industry has the required capacities and skill to grow. Raw material availability at internationally competing prices can address the present stagnation in the industry and help in the growth of this industry, especially the sunrise sectors like technical textiles”, said Rakesh Mehra, Chairman CITI.
