A Quality Control Order (QCO) for Polyester Staple Fibres, Different Filament Yarns, and Spun Yarn was issued by the Ministry of Chemicals and Fertilisers (Department of Chemicals and Petrochemicals), requiring all users to buy raw materials only from BIS licence holders, both domestically and internationally.

While the international producers have applied for examination and approval before the BIS authorities, the domestic manufacturers of the aforementioned products have already received BIS licences.  Due to the aforementioned raw materials not being produced in the nation, this has had a significant negative impact on manufacturer-exporters, who are the buyers of specialty fibres, filament yarns, and spun yarns as defined by the buyers, particularly the international buyers and global brands.

This has negatively impacted the MMF value chain’s export performance by obstructing the regular flow and availability of raw materials.  Similar to this, the Ministry of Textiles’ QCO for viscose staple fibre has an impact on all parties involved in the value chain, but especially on exporters.  The industry has continuously urged the Ministry of Chemicals & Fertilisers and the Ministry of Textiles to grant licences to all applicants and, at the very least, exempt artificial fibres and filaments used exclusively for export from the obligatory Quality Control Orders.

The Southern India Mills’ Association (SIMA) Chairman, Dr. S.K. Sundararaman, expressed gratitude to the Government for taking the Association’s suggestions into account and excluding the import of viscose staple fibre under the Advance Authorization Scheme.

Additionally, he expressed gratitude to the Government for excluding spun yarn, filaments, and staple polyester fibre from importation under the Advance Authorization Scheme.

According to what he said, in order for users of MMF imports allowed under the Advance Authorization Scheme to comply with pre-import requirements (using imported fibres only for export purposes), the export obligation fulfilment period has been shortened from 18 months to six months for all MMF imports allowed under the Advance Authorization Scheme.