In a significant policy shift, the Central Government has revoked the quality-control order (QCO) applicable to polyester fibre and yarn, relieving downstream textile and apparel manufacturers of compliance burdens. The move comes amid growing industry pressure over access to raw materials and competitiveness.
In an order dated 12th November 2025, the Government stated that, exercising powers conferred under Section 16 of the Bureau of Indian Standards Act, it was rescinding earlier notifications of the Ministry of Chemicals and Fertilizers that had introduced QCOs on Ethylene Glycol, Terephthalic Acid, Polyester spun (grey and white) yarns, Polyester Continuous Filament Yarn, Polyester Partially Oriented Yarn and Polyester Industrial Yarn.
The original QCO, issued by the Bureau of Indian Standards (BIS) under the auspices of the Department of Chemicals and Petrochemicals, required domestic manufacturers and importers of certain polyester staple filaments, spun yarns and fully drawn yarns to obtain BIS certification and bear the standard-mark licence for goods destined for the domestic market.
Ashwin Chandran, Chairman of the Confederation of Indian Textile Industry (CITI), said the rescinding of the QCOs on polyester fibre and yarn represented significant relief for the sector. He noted that this had been a long-standing demand of user industries, and that polyester fibre and yarn constituted the backbone of India’s MMF-based textile production. He observed that the measure would substantially contribute to the growth of the MMF segment in India.
He further remarked that the removal of QCOs would enhance the cost competitiveness of Indian textile and apparel products by facilitating easier access to raw materials at globally competitive prices. In combination with the Government’s recently announced Export Promotion Package on 12th November, he said the revocation would serve as a major confidence-booster for the entire textile and apparel value chain.
Durai Palanisamy, Chairman of the Southern India Mills’ Association (SIMA), said the Government’s decision had addressed one of the industry’s long-pending demands. He noted that the move would ease operational challenges faced by textile manufacturers and strengthen India’s position in global markets.
Suketu Shah, CEO of Vishal Fabrics, commenting on the move said, “The move is expected to reduce input costs, streamline imports, and boost operational efficiency, particularly for MSMEs, by removing certification bottlenecks. While the policy enhances flexibility and competitiveness across the value chain, domestic fibre producers may face short-term price pressure as imports become more attractive. Currently, domestic PSF, PFY, and VSF prices remain higher than landed import costs, even after duties and freight with PSF showing the widest gap. China stands to gain most from the relaxed norms, with its PSF and yarns expected to land in India 20–25% cheaper than domestic rates. Other potential exporters include Indonesia, Thailand, and select European nations for specialty fibres. Overall, this reform is composed to rebalance market dynamics, lower manufacturing costs, and strengthen India’s global competitiveness in the textile sector.”
