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Indian weaving industry optimistic for extension on polyester QCO

13 Jul '23
3 min read
Pic: Shutterstock.com
Pic: Shutterstock.com

Insights

  • Since the QCO on polyester yarn, the weaving industry remains hopeful of a possible extension.
  • Criticisms revolve around discrepancies in BIS, seen as skewed in favour of the spinning industry and restricting high-quality imported yarn.
  • Experts warn that current QCO may create non-tariff barriers, impacting the weaving industry and the textile sector.
Over a week has passed since the mandatory quality control order (QCO) was imposed on various types of polyester yarn, yet the weaving industry is still optimistic about a possible extension from the government. Insiders say that customs officials have not been strictly enforcing compliance with Bureau of Indian Standards (BIS) for releasing imported yarn consignments. Amidst this, the industry is identifying and highlighting discrepancies in the BIS standards for these products, calling for extensions and revisions of standards in line with global specifications. 

Ashish Gujarati, the vice president of South Gujarat Chamber of Commerce and Industry (SGCCI) and partner at the Surat-based fabric manufacturing firm, Future Trendz, told Fibre2Fashion, "We are 99.9% sure that the government will extend the implementation of QCO on polyester filament yarn. It will issue a notification very soon because it is a crucial time to remove discrepancies and revise standards in line with global specifications." 

Gujarati stated that the current standards are skewed in favour of the spinning industry, which has been legally mandated to control the market without providing consumers — specifically the weaving industry — a choice in purchasing raw materials. The standard does not assign responsibility for quality assurance or information disclosure to the spinners. After the implementation of the QCO, spinners started to gradually increase the prices of polyester yarn. Gujarati mentioned that many types of polyester yarn, such as bi-shrinkage and mechanical stretch yarn, are not domestically produced. However, the QCO has restricted imported supplies because foreign suppliers have not been certified. Nonetheless, sources within the industry have said that customs officials are adopting a lenient stance when considering clearance of imported consignments of these particular yarn types. 

The consumer industry has voiced concerns about contradictions regarding different types of polyester yarn. For example, the government had issued standard IS 17261:2022 for fully drawn yarn (FDY), but goods from BIS-certified FDY suppliers do not comply with the standard. A Surat-based weavers' cooperative, Ved Road Art Silk Small Scale Cooperative Federation Ltd, said in a letter sent to BIS that it made the BIS standard a mockery for the consumers at large. 

An industry expert emphasised that evenness in specifications such as length, tenacity, and deniers is vital for producing high-quality fabric. However, this uniformity is noticeably absent in the current QCO form. Disclosure of production-related information is also critical because outdated yarn's quality deteriorates, yet spinners do not provide this information on the goods' carton. Experts are concerned that the current form of QCO will create non-tariff barriers for imported polyester yarn supplies. The industry fears this could hinder the weaving industry from importing high-quality yarn due to discrepancies in BIS standards compared to global specifications. 

The industry is advocating for an extension of QCO implementation on polyester yarn. It has urged the government to form a committee with adequate representation from the weaving industry and revise the BIS standards in accordance with global standards. The industry also calls for lifting restrictions on high-quality imported yarn to balance market dynamics, warning that the monopolistic tendencies of domestic spinners could harm the weaving industry and, in turn, the broader Indian textile and garment industry. 

Fibre2Fashion News Desk (KUL)

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