NITMA praises government's MIP extension on synthetic knitted fabrics

The domestic textile industry received a significant boost with the government's decision to extend the Minimum Import Price (MIP) on 13 specific HSN codes of synthetic knitted fabrics. This move, announced by the Directorate General of Foreign Trade (DGFT), will help protect domestic manufacturers from unfair competition from low-priced imports.

The MIP, set at $3.50 per kg, will be effective from September 15, 2024, to December 31, 2024. Eight of the 13 HS codes included in the MIP are new, while the remaining five were already under its purview. Sanjay Garg, President of the National Institute of Textile Management and Apparel (NITMA), commended the government for its timely decision. He emphasized MIP is crucial to safeguarding the domestic textile industry, which has been facing challenges due to underpriced imports.

Garg, however, cautioned the battle against unfair imports is far from over. He warned that unscrupulous importers may attempt to circumvent the MIP by shifting their imports to other HS codes within chapter 60 or even outside of it. Therefore, the domestic industry must remain vigilant and continue to monitor import trends closely.

The imposition of MIP is expected to provide much-needed relief to domestic textile manufacturers. By restricting the import of undervalued synthetic knitted fabrics, the government aims to create a more level playing field for Indian producers and boost the overall competitiveness of the domestic textile industry.