- Quality Control Orders (QCO) have been issued for fibres such as cotton, polyester, and viscose in order to control the import of low-quality and low-cost items and to ensure that consumers receive quality products.
- Some QCOs have been made obligatory, while others are still being finalised.
What is the motion?
- The Bureau of Indian Standards (BIS) will give certificates to viscose staple fibre (VSF) manufacturers who meet its standards. (IS17266: 2019).
- The signature is now required.
Why are threads included in QCOs?
- The textile and clothing industries in India use both indigenous and foreign fibres and filaments.
- Imports are made for a variety of reasons, including cost competitiveness, a lack of availability in the domestic market, or to meet a specific demand of a foreign buyer.
- The QCO’s primary goal is to control the import of low-quality and cheaper items while also ensuring that customers receive quality products.
- The motivation for India’s move to implement a draught of Quality Control Orders (QCO) is to reduce a surge in Chinese imports while increasing exports to Western markets.
What are the new mandate’s challenges?
- Disruption in the supply chain: From nearly 20 nations, India imports 50,000 to 60,000 tonnes of viscose fibre and its variants such as Modal and Tencel LF each year. Annually, nearly 90,000 tonnes of polyester fibre and 1.25 lakh tonnes of POY (Polyester Partially Oriented Yarn) are supplied.
- 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: Indian textile manufacturers who rely on these suppliers for raw materials will have to seek for alternative suppliers or risk losing orders.
- Material scarcity: Some fibres have unique functional properties and require a distinct HS (Harmonised Commodity Description and Coding System) code when imported. The textile industry imports only a small amount of such fibers, so limiting their availability will deprive Indian customers of niche products.
- Price increases are possible because several textile plants use lower-grade fibres derived from rejects and wastes, which are not covered by the QCO.
Expectations in the textile business
- The industry believes that the import of specialty fibres used in blends with other fibres should be permitted without limitation.
- Any overseas applicant for a BIS certificate should receive it as soon as possible after examination.
Way forward
- Polyester-spun yarn mills in the MSME industry require capital assistance to establish product testing laboratories.
- According to the industry, the QCO should be applied only after all ambiguities have been resolved and all anomalies have been corrected.
Source: https://www.thehindu.com/business/Economy/explained-what-are-the-issues-with-the-new-quality-control-orders-for-fibres/article66681081.ece