NITMA President Shri. Sidharth Khanna expresses his profound appreciation and sincere gratitude to the Hon. Minister for Textiles, Shri Giri Raj Singh, and the Hon. Minister for Commerce & Industry, Shri Piyush Goyal, as well as the officials from both Ministries, for imposing a Minimum Import Price (MIP) of US$ 3.50 per kilogram on 13 specific HSN codes of synthetic knitted fabrics, which are 60019200, 60041000, 60049000, 60053600, 60053790, 60053900, 60062200, 60064200, 60063100, 60063200, 60063300, 60063400, and 60069000.
In its notification no. 49/24-25 dated 04.01.2025, DGFT set a minimum import price (MIP) of USD 3.50 per kilogram for the 13 HS codes of synthetic knitted fabrics mentioned above. This MIP will be in effect from January 1, 2025, to March 31, 2025, with an exemption for imports made by advance authorization holders, EOUs, and SEZs, provided that imported inputs are not sold into DTA.
According to the most recent data (up to October 24), import quantities have increased significantly despite the governments’ admirable and persistent efforts to stop these underpriced imports. This makes it abundantly evident that under-invoicing and other illegal practices are still common to get around these restrictions.
The introduction of the Minimum Import Price (MIP) has resulted in a significant rise in the overall number of imports under Chapter 60, rather than a decrease, according to an analysis of the most recent import data up to October 2024. As can be seen below, the import numbers have been astronomically increasing:
Jan-March 24 – 89 million kgs
Apr-Jun 24 – 81 million kgs
July-Sept 24 – 130 million kgs
Furthermore, the latest import data shows a surge in three more HS codes, apart from the 13 HS codes under MIP. A table below shows the substantial rise, in the average monthly imports for these 3 HS codes, from 1.31 Mn Kgs (during Apr-Jun’23) to 7.52 Mn Kgs in Oct’24 reflecting the mammoth hike of 600%.
This indicates that importers are circumventing HS codes, rendering our current method of implementing Minimum Import Prices (MIP) on specific HS codes ineffective. The data for November and December will reveal which new HS codes importers are utilizing. As we await this information, the industry is experiencing significant and irreversible harm.
While applauding government’s recent decision to extend the MIP on 13 specific HS Codes of synthetic knitted fabrics upto 31.03.2025. A request, along with the data, has been sent to the concerned ministries to:
- Widen the scope of MIP of USD 3.50/ Kg on All HS codes falling under Chapter 60 AND
- To include this provision in the budget to avoid the need for multiple notifications at frequent intervals.
In conclusion, Mr. Khanna, while truly admiring the government’s approach, humbly appealed to the concerned ministries to consider the afore-mentioned submissions and urged the domestic industry to remain vigilant by closely monitoring imports of synthetic knitted fabrics not only under chapter 60, but also beyond.
