The Northern India Textile Mills Association (NITMA) has raised alarm over under-invoiced imports of synthetic knitted fabrics, which it says are severely damaging the domestic textile industry. Today, NITMA President Sidharth Khanna made a heartfelt appeal to Prime Minister Narendra Modi, urging intervention to halt the illegal imports and misdeclaration of HS codes under Chapter 60 at Indian ports.
According to NITMA, certain importers are bypassing regulations by declaring synthetic knitted fabrics at prices as low as $1 per kilogram, while the actual global price ranges between $4–6 per kilogram. This malpractice has not only undermined domestic manufacturers but also resulted in over Rs10,000 crore in tax losses.
Although the government recently extended the Minimum Import Price (MIP) of $3.50 per kilogram on 13 synthetic fabric HSN codes until March 2025, imports have continued to rise. Data shows synthetic fabric imports surged from 89 million kilograms in Q1 2024 to 130 million kilograms in Q3 2024, as importers shifted to non-MIP HS codes.
Khanna commended the Ministry of Textiles and the Ministry of Commerce & Industry for their efforts but emphasized that current measures have proven inadequate. He pointed out the alarming involvement of logistics companies in importing these under-invoiced fabrics, predominantly from Nandiambakkam SEZ in Chennai.
To safeguard the textile industry, NITMA has called for a comprehensive investigation into these practices. It also urged the government to enforce stricter regulations and penalize violators to restore fair competition and trust in the market.
“Our industry cannot endure the financial and operational strain caused by such unscrupulous activities. Immediate action is imperative,” Khanna stressed.
