Textile Industry Urges Withdrawal Of QCO On Viscose Fibre And Yarn
Textile manufacturers in Tamil Nadu’s Coimbatore, Tiruppur, and Erode regions have urged the Union government to withdraw the Quality Control Orders (QCO) on viscose staple fibre (VSF) and the proposed QCO on viscose spun yarn (VSY), citing severe disruptions in raw material supply and rising costs.
VSF is the second-most critical input after cotton, with over 70% of the viscose yarn produced by 80+ mills across India woven on Tamil Nadu’s powerlooms. Since the QCO was imposed on imported VSF in March 2023, delays in BIS certification have blocked access to cost-effective imports from Indonesia, Thailand, and China, forcing spinners to rely on a single domestic supplier. This has inflated input costs, nullified Free Trade Agreement (FTA) benefits, and led to production slowdowns, unit closures, and machinery being sold as scrap.
A new government notification dated September 26, 2024, proposes to extend the QCO to VSY, adding further pressure on an already strained sector.
The industry warned that continued restrictions would cause deeper supply disruptions, job losses, and further damage to MSMEs. It urged the government to prioritize raw material access to revive production, protect employment, and support textile exports.
“The weaving sector in Tamil Nadu is at a breaking point. We appeal for urgent and empathetic intervention to safeguard millions of livelihoods,” the industry stated.
