The Indian textile industry, particularly in Gujarat, is grappling with increased fabric imports from China, prompting industry representatives to seek government intervention.
The issue was recently brought to the attention of Union Textile Minister Giriraj Singh during a meeting with sector leaders.
According to industry sources, Chinese manufacturers are supplying cotton-like fabrics at prices nearly 50 per cent lower than their Indian counterparts, significantly impacting domestic producers.
Ahmedabad and Surat, India’s prominent hubs for cotton and polyester textiles respectively , are feeling the pressure of this competition.
Gaurang Bhagat, President, Maskati Cloth Market Association, highlighted the persistent issue of fabric dumping from China, noting a substantial increase in imports preceding the recent Diwali season.
Bhagat also alleged instances of under-invoicing by Chinese suppliers to evade duties, further exacerbating the situation for local manufacturers.
The textile industry is calling for stringent measures to protect domestic interests.
Bharat Chhajer, Former Chairman, Powerloom Development and Export Promotion Council (PDEXCIL), advocated for the implementation of a base price on fabric imports, similar to recent measures taken in the knitting industry.
Sandeep Shah, Co-chairman, textile task force, Gujarat Chamber of Commerce and Industry (GCCI), emphasised the impact on both synthetic and cotton fabric markets.
He noted that the influx of low-priced Chinese polyester and synthetic fabrics is forcing domestic cotton textile manufacturers to adjust their production methods to remain competitive.
As the situation unfolds, the Indian textile industry awaits potential government action to address these challenges and safeguard the interests of local producers.