CITI requests for raw material availability at internationally competitive prices
(New Delhi, 20th May 2024)The Confederation of Indian Textile Industry (CITI) appreciates the Ministry of Textiles for implementing pivotal policy measures like the imposition of a Minimum Import Price (MIP) of USD 3.5/kg on the five HS lines of MMF Knitted Fabrics, effective until September 15, 2024 and enabling provisions for exemptions for inputs imported by Advance Authorization holders, EoU and SEZ units from the mandatory Quality Control Orders (QCOs) issued by the Ministry of Textiles.
These initiatives are expected to provide immediate relief to the Indian MMF industry and catalyse growth within the sector, positioning it for sustained development.These policy measures clubbed with many other growth drivers are likely to propel the Indian textile industry forward towards a visionary target of US$ 350 bn industry by 2030. It is also expected to bring about USD 100 billion in investment and create over 15 million new jobs.
However, to cater to such production targets, there will be a dire need to ensure sufficient availability of all types of raw materials including Cotton and MMF at internationally competitive prices.
To improve the cost competitiveness of the cotton value chain, below given policy recommendations are requested:
* Removal of import duty from all varieties of cotton including cotton waste
* Cotton productivity enhancement with a focus on specialized seed varieties like HTBt cotton seeds.
Towards MMF textiles growth, the Government may consider the following policy measures to enhance its growth:
* Exempting fibers and yarns not available domestically from the scope of Quality Control Orders (QCOs) to ensure access to essential raw materials without regulatory issues.
* Enable provisions for exempting inputs imported by Advance Authorization holders, EoU, and SEZ units from the mandatory QCOs issued by the Department of Chemicals and Petrochemicals (for polyester fibre/filament/yarn) inline to the exemption provided for QCOs issued by the Ministry of Textiles.
* Establishing a committee to ensure the availability of all types of raw materials (fibre/yarns) with periodic reviews of the emerging requirements of specialized fibre/yarn categories which may be exempted from the scope of QCOs due to gaps in supply/demand/price.
* Ensuring a smooth supply of all raw materials at internationally competitive prices.
* Lower standard input and output norms (SION) for cotton blended with MMF and VSF
* Address GST duty inversion in the MMF value chain to avoid capital blockage.
* Announce separate Harmonized System of Nomenclature (HSN) codes for recycled MMF-based products to promote sustainable products.
* Expand viscose manufacturing hub to states like Tamil Nadu and in other textile manufacturing clusters to reduce logistic cost of procuring such raw materials.
* Enable provisions for the import of inputs that are subjected to mandatory QCOs by AA, SEZ, and EoU units for intermediate supply also. At present, such exemptions are allowed for physical exports only.
“The Indian textile industry has the required capacities and skills 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 sectorslike technical textiles”, said Mr Rakesh Mehra, Chairman, CITI.
Recent Posts
- CITI-CDRA and Beetle Regen Solutions Forge Alliance to Revolutionize Cotton Farming with Regenerative Agriculture September 25, 2024
- Bharat-Tex Global Textile Expo New Delhi-February 14-17-2025 September 25, 2024
- CITI’s Chairman Reflects on the Textile Industry’s Challenges and Opportunities at 66th Annual General Meeting September 18, 2024
- Cir(073)/2024-September 18, 2024 September 18, 2024
- Cir(072)/2024-September 17, 2024 September 17, 2024
Archives
- September 2024 (9)
- August 2024 (16)
- July 2024 (13)
- June 2024 (21)
- May 2024 (7)
- April 2024 (13)
- March 2024 (9)
- February 2024 (13)
- January 2024 (15)
- December 2023 (7)
- November 2023 (10)
- October 2023 (3)
- September 2023 (8)
- August 2023 (5)
- July 2023 (10)
- June 2023 (11)
- May 2023 (19)
- April 2023 (16)
- March 2023 (17)
- February 2023 (16)
- January 2023 (14)
- December 2022 (11)
- November 2022 (9)
- October 2022 (11)
- September 2022 (13)
- August 2022 (13)
- July 2022 (15)
- June 2022 (13)
- May 2022 (6)
- April 2022 (3)
- March 2022 (1)
- February 2022 (1)
- January 2022 (1)
- December 2021 (1)
- November 2021 (1)
- October 2021 (2)
- August 2021 (4)
- July 2021 (1)
- March 2021 (1)
- February 2021 (2)
- January 2021 (2)
- November 2020 (2)
- October 2020 (1)
- September 2020 (2)
- August 2020 (1)
- June 2020 (1)
- May 2020 (2)
- March 2020 (3)
- February 2020 (3)
- September 2019 (2)
- August 2019 (1)
- July 2019 (1)
- May 2019 (3)
- April 2019 (1)
- March 2019 (3)
- February 2019 (3)
- January 2019 (4)
- December 2018 (1)
- November 2018 (2)
- October 2018 (1)
- September 2018 (3)
- August 2018 (3)
- July 2018 (7)
- March 2018 (1)
- January 2018 (13)
- November 2017 (3)