The Northern India Textile Mills’ Association (NITMA) has urgently appealed to Prime Minister Narendra Modi to take decisive action against the escalating influx of under-invoiced synthetic knitted fabrics, which are severely undermining the domestic textile industry. The association reports that this illicit trade has resulted in over Rs 10,000 crore in losses to the national exchequer due to evasion of both direct and indirect taxes.

In his appeal, NITMA President Sidharth Khanna highlighted how certain importers are exploiting loopholes by manipulating HS codes, bringing in these fabrics at a mere $1 per kg, while the global market price typically ranges between $4 to $6 per kg. This substantial price disparity undermines local manufacturers who are unable to compete with such unfair practices.

Earlier this month, the Central government had imposed a Minimum Import Price (MIP) of $3.50 per kg on 13 specific HSN codes of synthetic fabrics. However, despite these efforts, the situation has worsened. Import volumes have surged dramatically—from 81 million kg between April and June 2024 to 130 million kg from July to September.

Mr. Khanna expressed concern over the continued rise in imports, urging the government to implement more stringent measures to protect the domestic textile industry from further damage. The call for immediate intervention underscores the urgent need for a fair and level playing field for local manufacturers.

The Northern India Textile Mills’ Association (NITMA) is an association serving the interest of textile units across India. Formed in 1958, it represents industry for all policy matters with members from all segments & sizes of Textile Industry.