However, the downstream industry claims that the QCOs have proven disastrous for the Indian textile industry, merely promoting monopolistic activities by a few producers of polyester and viscose fibres, as well as their raw materials and yarn. The industry has urged the Union Finance Minister to reconsider the QCOs to ensure the supply of raw materials at globally competitive prices and quality.

Recently, the Supreme Court stayed the Gujarat High Court order reinstating anti-dumping duties on Purified Terephthalic Acid (PTA) imported from South Korea (Republic of Korea) and Thailand.

Ashish Gujarati, president of the Surat-based Pandesara Weavers Cooperative Society Limited, stated in a letter sent to Finance Minister Nirmala Sitharaman, “The government showed its sensitive approach towards downstream industry by challenging Gujarat HC order in Supreme Court. The court order will directly benefit fibre and yarn manufacturers and indirectly benefit the fabric and garment industry. It shows that the government is very much concerned for the downstream industry and fabric industry. We are sure that the government will take a positive approach if sunset review begins.”

Bharat Gandhi, chairman, Federation of Indian Art Silk Weaving Industry (FIASWI), stated in a separate letter to the finance minister that QCOs cannot ensure quality. These orders have proven disastrous for the industry, granting monopolistic privileges to a few upstream producers. The non-cotton fibre, yarn, and fabric industry is struggling to remain competitive in the global market as they are now dependent on only local suppliers. These suppliers are increasing the prices of raw materials because global supply has been restricted through the QCOs. The industry asserts that QCOs cannot ensure a consistent supply of raw materials, leaving the downstream industry uncompetitive in the global textiles and garment market.

Fibre2Fashion News Desk (KUL)