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Indian industry demands MIP on fabric import to combat Chinese dumping

24 Feb '24
2 min read
Pic: Adobe Stock
Pic: Adobe Stock

Insights

  • India's textile industry has strongly urged the government to set a $2.71/kg minimum import price for Chinese fabric, threatening production suspension and protests if demands are not met.
  • Allegations of Chinese dumping at low prices prompt calls for action, with industry representatives citing under-invoiced imports and manipulation of HSN codes.
India’s textile industry has strongly urged the central government to set a minimum import price (MIP) of $2.71 per kilogram (₹225/kg) for fabric imported from China. Industry organisations from northern India, especially from Punjab, have stated that if the government does not heed the demand, they will suspend their production and protest on March 1, 2024. It is important to note that the textile industry has been raising this issue for a long time amid slow demand across the world.

The Federation of All Textile Trading Manufacturing Associations of Ludhiana called a meeting last week in Ludhiana to discuss the problem. Industry representatives decided to demand an MIP of $2.71 per kg on fabric imports from China. Traders argued that China is dumping fabric at very low prices. They alleged that fabric is being imported at under-invoiced prices, which can only be controlled through the implementation of a minimum import price.

Tarun Jain Baba, an office bearer, told the media that they have raised the matter before the government during meetings with officials of the ministry of textiles. Indian textile mills are being forced to reduce their production by up to 50 per cent of their installed capacity. Businessmen allege that cheaper fabric is being imported through manipulation of the HSN code.

The industry organisations have said that if the government does not accept their demands, all manufacturing units involved in spinning, weaving, knitting, dyeing, and printing will suspend their production.

ALCHEMPro News Desk (KUL)

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