India eases polyester raw material import rules to boost textile exports

MUMBAI (ICIS)–India has relaxed import rules on polyester staple fibre (PSF), filament and spun yarns to help its domestic downstream textile industry boost exports.

Importers of these raw materials whose end-products were meant for exports will no longer be restricted to secure cargoes only from Bureau of International Standards (BIS)-certified producers, with immediate effect, based on a 6 June notification issued by the Ministry of Chemicals and Fertilisers.

Their imports qualify under the advance authorization scheme, which allows duty-free imports of inputs for export purposes. Eligibility under this scheme is being determined by committees appointed by the government.

“The announcement has given a relief to the manmade fibre (MMF) textile product exporters enabling them to improve their export performance that had been significantly affected in the last two years,” S K Sundraraman, chairman of industry body Southern India Mills Association (SIMA) said in a statement on 7 June.

SIMA as well as the Confederation of Indian Textile Industry (CITI) had been seeking exemptions from the mandatory Bureau of Indian Standards (BIS) certification of raw material imports under the Quality Control Order (QCO) since it was announced in April 2021 and took effect in October 2023.

Previously, raw materials can only be purchased from BIS license holders.

While domestic manufacturers of raw materials have obtained BIS licenses, applications from foreign manufacturers have remained pending, thereby constraining local textile production.

Manufacturers and exporters of goods that used specialty fibres and yarns as raw material were impacted by the QCO as they faced problems procuring the goods from global suppliers, SIMA stated.

Focus article by Priya Jestin