Power loom weavers urge Indian government to extend QCO orders on polyester yarn

Surat : While the Quality Control Order (QCO) for polyester yarn and its upstream value chain may come into effect from April 2023, powerloom weavers in Surat and South Gujarat have urged the Central Government to extend the implementation of the QCO orders for a  year.

In a letter to Union Minister of Commerce and Industry, Piyush Goyal, the Federation of Gujarat Weavers Welfare Association (FOGWA) stated that South Gujarat , which mainly comprises of member Weavers of MMF textiles and are amongst the largest users of Polyester yarn in India. The QCO orders would destabilize the powerloom weaving sector and would render many weavers, especially those manufacturing cloth from low-grade raw materials, to down their shutters.

The Bureau of Indian Standard (BIS) has  not included a single representative from the Domestic User Industry and the BIS codes are impractical in its implementation and are found to be encouraging disruption in supply chain rather than seems to be improving the quality of the end products.

The QCO may restrict the import of cheaper raw materials, according to the government. Indian manufacturers have been left with a large and unutilised production capacity due to the surge in imports of polyester yarn, fibre, and upstream raw materials like purified terephthalic acid (PTA) and monoethylene glycol (MEG).

Trade sources in India, however, said that due to the quality of imported goods being similar to domestic supplies, there was little possibility of limiting imports. A market expert was quoted as saying “International suppliers may face a temporary hurdle. Later, they will be able to charge even more prices on the basis of Bureau of Indian Standard (BIS) certification, which will be mandatory after April 3.

FOGWA stated the raw material items of polyester like ITY/ BSY yarns used in the manufacturing of Burak Fabrics, Mechanical Stretch Yarns – Used on production of Stretch fabrics, CEY Yarns- Used in Production of Stretch Fabrics, Polyester Low Melt Yarn – Used in Shoes upper part, will no longer be allowed to be imported , Stored or used for manufacturing activities of downstream products, therefore, the supply chain associated for such products will get affected if appropriate exemptions are not provided in the present QCO orders.

Ashok Jirawala, president of FOGWA said, “Many domestic manufacturer would not to get BIS certification and therefore they will not be able to manufacture the required yarn and supply to their customers by the date of implementation of the said quality order , thereby leading to the disruptions in supply chain.”