Government may extend minimum import price for textile products

The textiles ministry is currently evaluating six key products, including viscose rayon yarn and woven polyester fabric, with China identified as a significant source of these imports. 

The Indian government is considering the introduction of a minimum import price (MIP) on specific textile products due to a sharp rise in imports that has adversely affected domestic manufacturers. 

The textiles ministry is currently evaluating six key products, including viscose rayon yarn and woven polyester fabric, with China identified as a significant source of these imports. 

According to recent data, textile imports surged considerably during the April-August period of the current fiscal year. Flax imports recorded a year-on-year increase of 78.7%, viscose rayon yarn imports grew by 10%, and fabrics coated with polyurethane saw a 28.8% rise during the same timeframe. 

Industry analysis highlights China’s dominance in the supply chain for several textile products. The country accounted for 99% of India’s viscose rayon yarn imports, valued at USD 133.79 million, and 93% of the imports of man-made fibre pile fabrics in the first five months of FY25. The trade deficit with China during April-August 2024-25 reached USD 40.81 billion. 

The government’s current deliberations come after its recent decision to extend the MIP of USD 3.5 per kg on synthetic knitted fabrics until December 31. This extension covers eight additional fabric categories, including printed, bleached, unbleached, and crocheted fabrics. The measure aims to shield domestic industries from predatory pricing and sustain competitive local market rates. 

While China remains the primary supplier of coated fabrics made from plastics and polyurethane, holding a market share of 68% and 52%, respectively, European nations like Belgium and France dominate flax supplies. Additionally, Bangladesh holds an 81% market share in the export of cotton shorts and trouser bib and brace overalls to India. 

Government officials are engaging with domestic manufacturers to evaluate local production capacity and identify areas that require protective measures.