Ludhiana, January 6, 2025
The Hon. Minister for Textiles, Shri Giri Raj Singh, and the Hon. Minister for Commerce & Industry, Shri Piyush Goyal, have the profound respect and thanks of NITMA President Shri. Sidharth Khanna. extending the application of the Minimum Import Price (MIP) of US$ 3.50 per kilogramme to 13 specific HSN codes of synthetic knitted fabrics, including 60019200, 60041000, 60049000, 60053600, 60053790, 60053900, 60062200, 60064200, 60063100, 60063200, 60063300, 60063400, and 60069000, according to officials from the two ministries.
With effect from January 1, 2025, to March 31, 2025, DGFT, in its notification no. 49/24-25 dt. 04.01.2025, imposed a minimum import price (MIP) of USD 3.50 per kg on the 13 HS codes of synthetic knitted fabrics mentioned above. However, inputs imported by advance authorisation holders, EOUs, and SEZs that are not to be sold into DTA are exempt.
Mr. Khanna said that the most recent data (up to October 24) shows that import quantities have skyrocketed despite the governments’ admirable and unrelenting attempts to stop these cheap imports. suggesting that in order to get around these restrictions, under-invoicing and other illegal activities are nevertheless common.
Following the adoption of the Minimum Import Price (MIP), the overall amount of imports under Chapter 60 has actually climbed significantly rather than decreased, according to an analysis of the most current import statistics up to October 2024. As can be seen here, the import numbers have been astronomically increasing:
From January to March 24: 89 million kilogramme
81 million kg from April to June 24
August–September 24: 130 million kilogrammes
In addition, the most recent import data indicates an increase in three additional HS codes in addition to the 13 HS codes covered by MIP. The average monthly imports for these three HS codes increased significantly from 1.31 million kilogrammes (during April–June 23) to 7.52 million kilogrammes (during October 24), representing a 600% increase, as seen in the table below.
This suggests that importers are evading HS codes, which makes the way we now apply Minimum Import Prices (MIP) to certain HS codes useless. Which new HS codes importers are using will be shown by the statistics for November and December. The industry is suffering severe and permanent damage as we wait for this information.
While praising the government’s recent decision to prolong the MIP for 13 certain synthetic knit fabric HS Codes until March 31, 2025. The data and a request have been forwarded to the relevant ministries to:
A. Extend the USD 3.50/kg MIP to all HS codes covered by Chapter 60 AND
B. Include this clause in the budget to eliminate the need for repeated notifications at regular intervals.
While sincerely applauding the government’s strategy, Mr. Khanna concluded by pleading with the relevant ministries to take into account the aforementioned submissions and advising the domestic industry to continue being watchful by closely examining imports of synthetic knitted fabrics both under and outside of chapter 60.