In a bid to fortify domestic manufacturing and mitigate the inundation of low-cost imports, the Central government has introduced a Minimum Import Price (MIP) on specific categories of synthetic knitted fabrics. Implemented under the Foreign Trade (Development & Regulation) Act, 1992, and in alignment with the Foreign Trade Policy, 2023, this measure aims to establish equitable conditions for indigenous producers.
Effective immediately, revisions to the import policy and conditions have been instituted for designated ITC (HS) codes falling under Chapter 60 of the ITC (HS) 2022. The affected HS codes encompass various forms of synthetic knitted fabrics, including unbleached, bleached, dyed, yarn of different colors, and printed varieties. Importation of these categories is now restricted unless the CIF value exceeds $ 3.50 per kg.
The imposition of this minimum import price seeks to curb the influx of cheaper imports and shield the interests of domestic manufacturers. The reinstatement of the prior ‘Free’ import policy is slated for September 16, 2024, barring explicit amendments in subsequent notifications.
Anticipated ramifications span across the textile sector, with manufacturers and traders bracing for adjustments in pricing strategies and sourcing patterns. The government's decision underscores its dedication to nurturing indigenous production capacities and fostering an enabling environment for domestic industries. It emphasizes the pivotal role of trade policies in safeguarding domestic stakeholders while fostering sustainable economic development.
