The government has enforced an MIP of Rs 290.11 per kilogram on five specific synthetic fabrics.
Just before the model code of conduct was set to come into force, the BJP-led central government brought relief to the struggling domestic textile sector by implementing a minimum import price (MIP) on synthetic fabric.
A notification regarding this was issued by the Ministry of Commerce and Industry. The government has enforced an MIP of Rs 290.11 per kilogram on five specific synthetic fabrics.
The sector had been facing tough competition from inexpensive imports and under-invoicing, particularly from China, which had undermined the competitiveness of local manufacturers.
According to the notification, the MIP is applied to unbleached or bleached synthetic fabric, dyed yarns of different colours, printed fabric, and others. The import of these products is prohibited if their cost, insurance, and freight (CIF) value is less than $ 3.5 per kilogram. These synthetic fabrics are classified under Indian trade classification – harmonised system codes 60063100, 60063200, 60063400, and 60069000.
Various associations and organisations from across the country, led by the Ludhiana textile industry, met with officials from the Ministry of Textile and raised the demand to impose MIP on fabric imported from China. During the meeting, ministry representatives assured the imposition of MIP but requested time to determine the minimum value. The meeting was held at Udyog Bhawan in Delhi as well as through video conference.