Indian weavers demand QCO extension, spinners want implementation

R K Vij, president of the Textile Association of India (TAI), said in a statement that the government should not extend QCOs on POY, FDY, and IDY from July 3. He pointed out that QCOs have already been implemented on polyester fibre, purified terephthalic acid (PTA), and monoethylene glycol (MEG). He highlighted the problem of China's heavy exports, stating that China has dumped a full year’s production of POY, FDY, and IDY over the past five months. He underscored that India produces surplus polyester filament yarn, but mills are underutilising their capacity due to the massive supply from China. Moreover, additional capacity is expected in the coming years. 

TAI has called for the implementation of QCOs starting from the garment and fabric sectors, instead of starting with raw materials. It warned that if the government does not implement QCOs from July 3, there will be an influx of imported products, which could harm the domestic industry, already under strain for the past year. TAI argued against any further extensions, given the sufficient availability of materials. 

Conversely, many weaving industry organisations have lobbied for the extension of the implementation on polyester yarn. The Southern Gujarat Chamber of Commerce and Industry has intended to send a memorandum from twenty thousand weaving units urging the government to delay the implementation. Other organisations representing weavers, such as the Federation of Gujarat Weavers' Welfare Association and the Federation of Indian Art Silk Weaving Industry, have also sent letters to the government. 

A common memorandum from The Southern Gujarat Chamber of Commerce and Industry said that QCO orders for BIS on various polyester yarn should be held up for another nine months or till the required amendment. The weaving industry emphasised that these QCOs should not be implemented mandatorily. Provisions in the orders that are not feasible should be removed. 

They argued that QCOs should not be used as a non-tariff barrier and stressed that weavers should be able to purchase raw materials at internationally competitive prices. They claim that numerous international suppliers have applied for BIS certification but were not granted it. If the government enforces the QCOs, they warn that a large number of weaving units could be forced to shut down. 

Weavers in general also have some reservations in the matter. Bharat Shah, an Ichalkaranji (Maharashtra) based power loom owner, told Fibre2Fashion, “QCOs are good as everybody needs good quality raw material but the way for implementation is not appropriate. Retail consumers do not bother about the quality of raw material. But upgradation of machinery and use of good quality raw material is increasing due to awareness and increasing competition. The implementation of QCO on polyester yarn will be beneficial for the industry in the long run. But real problem should not be ignored by the government.” 

Fibre2Fashion News Desk (KUL)