QCOs on Polyester Fibre, Yarn, Filaments Removed
The QCOs had made imports tough for the sector
Chennai: The government has removed the Quality Control Orders (QCOs) imposed on polyester fibre, yarn, and filaments and this is expected to accelerate the growth of the man-made fibre (MMF) sector.
“This was a long-standing demand that would help give a level playing field to industry as MMF constitutes 70 per cent of the global market and India was rendered uncompetitive due to very high raw material price as against China, Bangladesh and Vietnam,” said Sanjay Jain, chair, ICC National Textiles Committee.
The Indian textiles sector currently imports polyester and viscose fibre for MMF production. The QCOs had made imports tough for the sector.
According to the Southern India Mills Association the consumption pattern of man-made fibres (MMF) and their blended textile products is undergoing a major transformation even in India, aligning with the global trend of a 70:30 ratio in favour of MMF.
The removal of the QCO on Terephthalic Acid and Ethylene Glycol, the key raw material for manufacturing polyester fibre, also will enhance raw material availability and competitiveness. Overall, the removal of these QCOs is expected to pave the way for accelerated growth across the MMF textile value chain, encompassing yarns, fabrics, garments, made ups, and technical textiles.
However, the industry also has been seeking removal of QCOs on viscose fibre and yarn. Viscose fibre and filament yarn is the second largest MMF raw material that needs to be made available at an internationally competitive rate in an uninterrupted manner to grab the emerging global market opportunities. SIMA finds that removal of QCO on VSF and filament yarn is essential to facilitate the industry to produce value-added technical textiles, readymade garments and made ups.
