Gujarat High Court issues interim stay on withdrawal of QCOs for FDY, POY

The Gujarat High Court has issued an interim stay on the Union Government's decision to rescind Quality Control Orders (QCOs) for Fully Drawn Yarn (FDY) and Partially Oriented Yarn (POY). Following a petition by Sumeet Industries, this judicial intervention effectively reinstates mandatory Bureau of Indian Standards (BIS) certification for imported polyester yarns until July 2026. The ruling creates a sudden regulatory shift for the Indian textile value chain, which had recently transitioned toward a more liberalized import regime intended to curb rising domestic production costs.

Market data indicates, during the brief period following the initial QCO rollback in late 2025, polyester yarn imports increased by 84 per cent Y-o-Y, primarily from Chinese suppliers. This influx gives much-needed relief to downstream weavers and knitters in Surat, where yarn prices had previously gone up Rs 10/kg due to crude-linked feedstock volatility. However, domestic spinning mills argued that the removal of quality barriers led to ‘predatory pricing’ and a flood of sub-standard materials. This stay ensures a level playing field for domestic manufacturers who have invested heavily in quality compliance, stated a senior legal representative for the spinning industry. While the order protects upstream margins, downstream garment exporters face renewed challenges in sourcing specialized, cost-competitive synthetic fibers essential for meeting international apparel contracts under current free trade agreements.

Sumeet Industries is a leading Indian manufacturer specializing in polyester chips, POY, and FDY. Serving major domestic textile hubs and export markets, the company focuses on high-capacity spinning and value-added yarns. Currently undergoing strategic debt restructuring, Sumeet aims to leverage protective regulatory frameworks to stabilize its long-term financial performance and domestic market share.