Manufacturers of synthetic textiles downstream believe that the Indian government ought to lift the Quality Control Orders (QCOs) pertaining to man-made fibers (MMF).

These orders have reduced the MMF supply chain's ability to compete by limiting access to reasonably priced and specialized raw materials.

The textile industry is already dealing with low domestic demand, declining exports, and an undeveloped raw material value chain; QCOs on polyester and viscose inputs have made matters worse. As a result, production capacity has been significantly idled, and balance sheets have turned negative, according to industry representatives.

Industry participants state that after QCOs were implemented on these inputs early in the fiscal year, the market prices of PSF and VSF surged in FY24. In order to sell products covered by a QCO in India, foreign exporters are required to secure certification from the Bureau of Indian Standards (BIS). Its goal is to reduce the amount of subpar goods that are imported into the nation.

Industry participants claim that BIS has been extremely picky about which foreign exporters it certifies under the PSF and VSF QCOs. For example, China and Thailand accounted for 65% of PSF imports in 2022–2023. Along with just three Thai plants—two of which are owned by Indorama Ventures, which also produces PSF in India—the BIS has not certified any Chinese operations. In a similar vein, although Indonesia and Singapore accounted for 50% of VSF imports in FY23, neither nation's business holds a BIS certification. Furthermore, just three overseas VSF units—all owned by Lenzing AG—in Austria and the United Kingdom have received certification from the BIS. Lenzing's Indonesian factory has not yet received certification, though.

According to official trade data, PSF imports decreased by 43% in FY24 to Rs 520 crore from Rs 917 crore in FY23. In a similar vein, VSF imports fell by 65% over that time, from Rs 2,033 crore to Rs 710 crore. Reducing imports of VSF and PSF has made downstream consumers—knitters, weavers, and spinners—more dependent on domestic fiber sources. The Indian Express was informed by a number of industry representatives that the local market, which also lacks a sufficient supply of specialized fibers, is more expensive for these inputs.