Textile Sector – Cotton, Jute, Wool, Silk, Handloom, etc.

Issues with new Quality Control Orders for fibres

Note4Students

From UPSC perspective, the following things are important :

Prelims level: QCO

Mains level: Not Much

quality

Central idea

  • Quality Control Orders (QCO) have been issued for fibres like cotton, polyester, and viscose to control the import of sub-quality and cheaper items and to ensure that customers get quality products.
  • The QCOs are made mandatory for some and yet to be finalized for others.

What is the move?

  • The Bureau of Indian Standards (BIS) will issue certificate to manufacturers of viscose staple fibre (VSF) who comply with its standards (IS17266: 2019).
  • The hallmark is made mandatory.

Why are fibres covered under QCOs?

  • The Indian textile and clothing industry consumes both indigenous and imported fibres and filaments.
  • The imports are for different reasons, such as cost competitiveness, non-availability in the domestic market, or to meet a specified demand of the overseas buyer.
  • The main aim of the QCO is to control the import of sub-quality and cheaper items and to ensure that customers get quality products.

Reasons behind

  • India’s move to introduce a draft of Quality Control Orders (QCO) aims to curb a Chinese import surge and boost exports to western markets.

What challenges does the new mandate bring?

  • Supply chain disruption: India imports annually 50,000 – 60,000 tonnes of viscose fibre and its variants such as Modal and Tencel LF from nearly 20 countries. In the case of polyester, almost 90,000 tonnes of polyester fibre and 1.25 lakh tonnes of POY (Polyester Partially Oriented Yarn) are imported annually.
  • Unease of doing business: Getting the certificate from the BIS involves a cost and hence not all are interested in getting the certificate.
  • Value chain disruption: The Indian textile manufacturers who are dependent on these suppliers for the raw material will have to either look at other suppliers or lose orders.
  • Material shortage: Some varieties of fibres have special functional properties and separate HS (Harmonised Commodity Description and Coding System) code when imported. The textile industry imports just small quantities of such fibres, and restricting their availability will deny Indian consumers of niche products.
  • Prospected price rise: Several textile units use lower-grade fibres that are generated from rejects and wastes and these are not covered under the QCO.

Textile industry’s expectation

  • The industry is of the view that the import of speciality fibres that are used as blends with other fibres should be made available without restriction.
  • Any overseas applicant for the BIS certificate should get it without delay after inspection.

Way forward

  • Polyester-spun yarn mills in the MSME sector need capital support to set up labs to test products.
  • The QCO should be implemented only after the ambiguities are cleared and the anomalies set right, says the industry.

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