Chinese fabric dumping has emerged as a significant challenge, prompting industry leaders to escalate the issue to the Union Textiles Minister.
Ahmedabad, renowned as India’s hub for cotton textiles, and Surat, a leader in polyester textiles, have both felt the impact of increased fabric imports from China, which are reportedly being sold at nearly half the price of Indian cotton fabrics. Officials from the Maskati Cloth Market Association highlighted the persistent influx of Chinese fabrics, particularly noting a surge in imports in recent months, including a notable increase ahead of last Diwali. They raised alarm over instances where Chinese suppliers allegedly under-invoice their goods to pay lower duties, thereby undercutting domestic manufacturers and disrupting the market. During a recent meeting with Union textile officials, industry representatives reiterated their concerns, emphasizing the need for immediate government intervention. They called for the establishment of a base price for fabric imports from China, drawing parallels to measures implemented recently for the knitting industry, aimed at curbing excessive imports from China.
“It’s evident that China is flooding the Indian market with polyester and synthetic fabrics, alongside cotton-like materials priced well below domestic equivalents,” remarked one industry official. “This situation not only depresses demand for higher-priced Indian cotton textiles but also forces local manufacturers to pivot towards blending polyester to maintain competitiveness.” The plea for restrictions on Chinese imports underscores the urgency felt within the Indian textile sector, grappling with shrinking demand and competitive pressures exacerbated by cheaper imports. Industry leaders are urging the central government to adopt proactive measures to safeguard the interests of domestic manufacturers and ensure a level playing field in the textile market.
