The looming implementation of a Quality Control Order (QCO) on textile input materials has raised concerns in the textile industry. Chinese exporters are suspected of flooding India with low-cost fiber and polyester ahead of the QCO's implementation.
Larger industry players view the QCO favorably, but micro, small, and medium enterprises (MSMEs) are struggling with a double whammy of declining exports and a new wave of industry standards.
The influx of substandard imports from China, which are up to ₹5-7 per kg cheaper than domestically produced polyester fiber, highlights this challenge. Chinese exporters are taking advantage of the regulatory transition period in anticipation of the government's standards taking effect on October 1.
There need for value-added quality control measures and urged attention to be paid to the cotton value chain, which is the foundation of the Indian textile sector. Despite India's status as a major cotton producer, a decline in both exports and production, attributed to decreased Western demand as a result of the protracted conflict in Ukraine, puts the country at risk of becoming a net importer of cotton.
The US Department of Agriculture (USDA) predicts that India's cotton exports will fall to a 19-year low in the current crop season (October 2022 to September 2023).
The industry's challenges are compounded by rising cotton prices, which have fluctuated between ₹55,000 and ₹65,000 per candy, with some instances exceeding ₹1 lakh.
Trade experts emphasize the importance of cotton, while the government focuses on garments and technical textiles, and urged a balanced approach to maintaining India's core textile expertise.
