Surat weavers defer procurement as Government rescinds 14 QCOs on intermediates and fibers

Manufacturing units in major weaving clusters such as Surat are adopting a highly conservative ‘hand-to-mouth’ procurement strategy as the Indian synthetic textile market is passing through a sharp transition following the central government's decision to rescind 14 Quality Control Orders (QCOs) on polyester intermediates and fibers.

This regulatory rollback has dismantled the mandatory Bureau of Indian Standards (BIS) certification requirements for imports, effectively opening the market to more competitively priced raw materials from China and Southeast Asia. Consequently, the domestic price for Polyester Staple Fiber (PSF) and spun yarns has corrected by approximately Rs 1-2 per kg, reflecting the anticipated influx of cheaper shipments.

Stakeholders say, while domestic polyester spun yarn (30s) is currently trading between Rs 140 and Rs 152 per kg, landed import costs from Chinese suppliers are projected to be significantly lower once the February consignments arrive. This expectation of a price floor reset has stalled bulk inventory building. Ashwin Chandran, Chairman, Confederation of Indian Textile Industry (CITI), noted, this newfound flexibility allows mills to diversify into specialty fibers like cationic polyester and exotic blends, which are essential for high-value performance textiles. While this move enhances global competitiveness for apparel exporters, domestic fiber producers face immediate pressure to optimize operational costs to counter the 20-25 per cent price advantage held by imported Asian yarns.

The supply of PTA, MEG and PSF is dominated by Reliance Industries in India. The company manages a vast portfolio including the ‘Recron’ brand. It is currently expanding its recycled polyester capacity to align with global sustainability mandates. Financially, RIL maintains a robust outlook, leveraging integrated margins to navigate global feedstock volatility while targeting a dominant share in the emerging technical textiles segment.