The Indian textile industry has received a boost with the government’s decision to extend the Minimum Import Price (MIP) on certain knitted fabric items. The move aims to protect domestic manufacturers from the influx of low-priced imports that could harm the local market.
The Directorate General of Foreign Trade (DGFT) announced on Tuesday that the MIP on synthetic knitted fabrics would be extended until December 31, 2024. Additionally, an MIP of $3.5 per kg was imposed on eight new categories of knitted fabrics to prevent unfair competition.
The textile industry has expressed optimism that this measure will address the pressing issue of underpriced imports, which have been putting pressure on domestic producers. However, the National Institute of Textile Management and Research Association (NITMA) has cautioned that unscrupulous importers may attempt to circumvent the MIP by switching to other product codes.
To mitigate this risk, NITMA has urged the industry to remain vigilant and closely monitor import activities.
