QCO Revocation Begins To Ease Input Costs For Textile & Apparel Sector: CITI

(MENAFN- KNN India) New Delhi, Dec 24 (KNN) The Confederation of Indian Textile Industry (CITI) said the recent revocation of multiple Quality Control Orders (QCOs) on key raw materials has begun to yield positive results for the textile and apparel sector, with domestic prices of several inputs showing a downward trend since the announcement in November.

According to inputs from industry members, prices of Polyester Staple Fibre (PSF) have declined by about Rs 4 per kg, while Lyocell fibre prices have fallen by nearly 3 per cent. Yarn prices have also corrected in line with the reduction in fibre costs.

Improved Sourcing Flexibility

“At CITI, we have always maintained that the rescinding of the QCOs will have a significant beneficial effect on the textile and apparel industry and contribute to improving the global competitiveness of the country's textile and apparel sector,” CITI Chairman Ashwin Chandran said.

“The domestic price corrections that we have seen within such a short period of the revocation of the QCOs testify to this belief of ours,” he added.

CITI reiterated that the removal of QCOs has enabled domestic spinning mills to source specialty and value-added fibres globally, including cationic polyester, specialty viscose, blended fibres, and other niche inputs that were earlier difficult to procure.

The increased flexibility is expected to help manufacturers diversify beyond commodity products and move into higher-value, niche and performance textile segments that are seeing rising demand in international markets.

Export Competitiveness and FTAs

Chandran noted,“In the backdrop of opportunities opening through the FTAs already signed by India and those on the anvil, the revocation of QCOs will further improve price realisation for textile and apparel exporters, result in higher order conversions from global buyers, and lead to better capacity utilisation by textile and apparel industry companies.”

He added that, by extension, the rescinding of the QCOs would proactively support efforts to achieve the national target of textile and apparel exports worth USD 100 billion by 2030.

The industry body also linked the policy change to expanding market access under India's recent and ongoing trade agreements.

India signed the Comprehensive Economic Partnership Agreement (CEPA) with Oman in December and concluded free trade agreement negotiations with New Zealand. Earlier this year, India signed the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom, and is engaged in trade talks with the European Union and the United States.

(KNN Bureau)

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