Government Extends Import Price on Synthetic Knitted Fabrics

The government has extended the minimum import price (MIP) of USD 3.5 per kg on synthetic knitted fabrics till December 31, 2023. The move, intended to discourage cheap fabric imports, has been extended to eight new types of knitted fabrics. However, industry officials warn it could increase input costs and reduce competitiveness.

The government on Tuesday extended the minimum import price (MIP) of USD 3.5 per kg on synthetic knitted fabrics until December 31 of this year. This extension aims to discourage cheap inbound fabric shipments.

Additionally, the MIP was expanded to include eight new types of knitted fabrics. The Directorate General of Foreign Trade (DGFT) announced in a notification that the MIP on synthetic knitted fabrics is extended from September 15 to December 31.

However, downstream industry users have expressed concerns that the MIP will hike input prices, affecting the price competitiveness of Indian textile products in global markets. An industry official argued that the government should impose an anti-dumping duty instead of an MIP if other countries are dumping this product into India. The MIP was first imposed on March 16, 2024, and since then, exports of man-made yarn/fabrics and made-ups have risen by 1.33% to about USD 2 billion during April-August this fiscal year. Meanwhile, ready-made garment shipments grew by 7.12% to USD 6.39 billion, and imports of textile yarn fabric and made-up articles increased by 4.58% to USD 978.61 million during the five-month period.