Govt revokes 14 QCOs on goods affecting textile value chain, Pg25

Key Highlights:

• The Ministry of Chemicals and Fertilisers revoked Quality Control Orders (QCOs) on 14 items crucial to the textile value chain.
• The decision follows a 50% US tariff imposition and concerns from MSMEs regarding increased regulatory costs.
• A Niti Aayog report highlighted operational complexities due to mandatory standards on raw materials.
• India's textile exports experienced a decline of 10.34% in September 2025 compared to September 2024.

Detailed Insights:

• The revoked QCOs include primary input materials like Terephthalic Acid, Ethylene Glycol, Polyester Industrial Yarn (IDY), and Polyester Staple Fibres (PSF), where India relies significantly on imports.
• The Niti Aayog report recommended revoking QCOs on 27 products, suspending them on 112, and deferring them on 69 upcoming product categories.
• The Confederation of Indian Textile Industry (CITI) reported that the US tariff, effective August 27, significantly impacted India's textile and apparel exports.
• The US is the largest market for India's textile and apparel exports, contributing approximately 28% to the total revenue, amounting to nearly $11 billion in 2024-25.
• Niti Aayog found that QCOs increased raw material prices by 10-30% compared to global benchmarks, affecting the competitiveness of apparel producers.
• The report also noted that no major textile-exporting country mandates factory-level certification on synthetic fibres or yarns, relying instead on voluntary standards and buyer audits.
• QCOs scope has expanded from finished goods to raw materials, intermediates, and capital goods, with the number of products under mandatory QCO coverage increasing from less than 70 to nearly 790 between 2016 and 2025.

Key Concepts Involved:

• Quality Control Orders (QCOs): Mandatory standards enforced by the government to ensure product quality and safety.
• Terephthalic Acid: A chemical compound primarily used in the production of polyester fibers and resins.
• Ethylene Glycol: An organic compound used as a raw material in the manufacture of polyester fibers and antifreeze formulations.