NITMA applauds the Extension of Minimum Import Price on 13 HS codes of Synthetic knitted fabrics till 31.03.2025.
Sidharth Khanna, President of NITMA, extends his deep admiration & sincerest gratitude to the Hon’ble Minister for Textiles, Giri Raj Singh, & the Hon’ble Minister for Commerce & Industry, Piyush Goyal, along with the officials from both the respective ministries, for extending the imposition of Minimum Import Price (MIP) of US$ 3.50 per Kg on 13 specific HSN codes of synthetic knitted fabrics namely 60019200 , 60041000 ,60049000, 60053600, 60053790, 60053900, 60062200, 60064200, 60063100, 60063200, 60063300, 60063400, and 60069000.
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DGFT, vide its notification no. 49/24-25 dt. 04.01.2025, imposed a minimum import price (MIP) of USD 3.50 per Kg on the above-cited 13 HS codes of synthetic knitted fabrics, effective from 01st Jan 2025 upto 31st March 2025 with the exemption granted for inputs imported by advance authorization holders, EOUs & SEZs, not to be sold into DTA.
Khanna further informed that despite the governments’ commendable & relentless efforts to curb these under-
priced imports, the import quantities have taken a huge surge, according to the latest data (up to Oct.24), clearly indicating that under-invoicing and other illicit practices are still prevalent to circumvent these measures. After analyzing the most recent import data up to October 2024, it has been observed that the total quantity of
imports under Chapter 60 has actually increased substantially, rather than decreased, after the implementation of the Minimum Import Price (MIP).
The import figures have been staggeringly rising, as shown below:
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.
This indicates that importers are circumventing HS codes, rendering our current method of implementing Minimum
Import Prices (MIP) on specific HS codes are 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.
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While applauding the government’s recent decision to extend the MIP on 13 specific HS Codes of synthetic knitted fabrics up to 31.03.2025.
A request , along with the data, has been sent to the concerned ministries to:
A. Widen the scope of MIP of USD 3.50/kg on all HS codes falling under Chapter 60 AND
B. To include this provision in the budget to avoid the need for multiple notifications at frequent intervals.
In conclusion, 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.