Meta Description: NITMA welcomes MIP extension on synthetic fabrics imports, urges broader coverage to curb rising imports and protect domestic industry

Sidharth Khanna, President of the Northern India Textile Mills Association (NITMA), expressed his deep appreciation and sincere gratitude to the Honourable Minister for Textiles, Giri Raj Singh, and the Minister for Commerce & Industry, Piyush Goyal, for their decisive action in extending the Minimum Import Price (MIP) of $3.50 per kg on 13 specific HS codes of synthetic knitted fabrics.

This extension, as per the DGFT notification no 49/24-25 dated 4th January 2025, is effective from January 1 to March 31, 2025, with exceptions granted for imports by advance authorisation holders, EOUs, and SEZs, provided the imported inputs are not sold into the Domestic Tariff Area (DTA).

Khanna highlighted a concerning trend in the import data up to October 2024, showing a significant rise in imports under Chapter 60, despite the government’s efforts to curb underpriced imports. Import figures have risen dramatically:

Jan-March 2024: 89 million kg

Apr-Jun 2024: 81 million kg

Jul-Sept 2024: 130 million kg

Additionally, three other HS codes not covered by the MIP have seen a staggering 600 per cent rise in imports, increasing from 1.31 million kg in Apr-Jun 2023 to 7.52 million kg in Oct 2024. This suggests that importers are circumventing the MIP by switching to different HS codes, rendering the current approach ineffective.

In light of this, Khanna requested that the government extend the MIP to all HS codes under Chapter 60 and include this provision in the upcoming budget to avoid the need for frequent notifications. He emphasized the importance of vigilance within the domestic industry to monitor imports of synthetic knitted fabrics not only under Chapter 60 but also beyond. Khanna’s appeal aims to protect the domestic industry from the adverse impacts of unfair trade practices while acknowledging the government's efforts in tackling the issue.