Downstream synthetic textile manufacturers are grappling with significant challenges following the implementation of the Government’s Quality Control Orders (QCOs) on man-made fibres. These orders have created barriers to accessing reasonably priced and specialized raw materials, making it increasingly difficult for the man-made fibre (MMF) supply chain to remain competitive.
The pressing question is whether the QCOs justify their cost to the textile industry. Is the price of compliance too steep?
Impact on Production and Supply Chain
QCOs on polyester and viscose inputs have disrupted production capacity and strained the supply chain. Amid already weak domestic demand and declining exports, the additional burden of an underdeveloped raw material value chain is worsening the situation. Since the QCOs were enforced early in the fiscal year, market prices for Polyester and Viscose Staple Fibre have surged. This price hike is challenging manufacturers to maintain their production costs, turning many balance sheets from black to red.
Certification Challenges
Foreign exporters must now secure certification from the Bureau of Indian Standards (BIS) to sell their products in India, a process criticized for being highly selective. Major PSF suppliers such as China and Thailand have faced limited certifications, with no Chinese operations certified thus far. A Chinese industry insider likened obtaining BIS certification to securing VIP tickets to a sold-out concert—exclusive and nearly impossible.
Similarly, key VSF suppliers from Indonesia and Singapore lack BIS certifications, further exacerbating supply issues.
Decline in Imports
Official trade data underscores the QCOs’ impact: PSF imports dropped by 43% in FY ’24, and VSF imports fell by 65%. This significant reduction in imports has heightened reliance on domestic fibre sources, affecting the quality and consistency of raw materials for downstream consumers like knitters, weavers, and spinners.
Call to Action
Industry stakeholders are urging the government to reconsider the QCOs to support the synthetic textile sector’s competitiveness and growth. The current regulatory framework is proving detrimental to the industry’s health, and a reevaluation is necessary to ensure sustainability and continued progress in the sector.
