India’s textile leaders are urging the Central Government to establish a minimum import price (MIP) of $2.71 per kilogram (₹225/kg) for fabric imported from China. 

Industry bodies primarily from northern India, particularly Punjab, have warned of suspending production and staging protests starting March 1, 2024, if their demands are not met. This call for action stems from persistent concerns within the textile sector regarding sluggish global demand.

During a meeting convened by the Federation of All Textile Trading Manufacturing Associations (FATTMA) of Ludhiana, industry representatives unanimously agreed to push for an MIP of $2.71 per kg on fabric imports from China. They argued, China has been flooding the market with fabric at significantly reduced prices, alleging that these imports are often under-invoiced. According to them, only by implementing a minimum import price can such practices be curtailed.

A prominent industry leader, Tarun Jain Baba highlighted, they have repeatedly raised these concerns during discussions with officials from the Ministry of Textiles. Indian textile mills have reportedly been compelled to slash their production by as much as 50 per cent of their total capacity. 

Business leaders assert that the influx of cheaper fabric is facilitated through the manipulation of the Harmonized System of Nomenclature (HSN) code.

In a collective statement, industry organisations have issued an ultimatum to the government, warning of a complete halt in production across various sectors including spinning, weaving, knitting, dyeing, and printing if their demands are not addressed promptly.