The Northern India Textile Mills’ Association (NITMA) has been highlighting the grave issue of under-invoiced imports of synthetic knitted fabrics that are causing irreversible damage to the domestic textile industry.

Regarding it, on 22nd January 2025, in a humble appeal to Narendra Modi, Prime Minister NITMA requested the PM for his kind intervention to address the issue and bring an end to these Under-invoiced Imports of Synthetic Knitted Fabric (under Chapter 60) & Misdeclaration of HS codes at the Indian ports.

The appeal made by Sidharth Khanna, President of NITMA, comprised a list of importers affecting these under-priced fabrics, who are circumventing HS codes to import the fabric at a price of around $1 per kg whereas the true price ranges between $ 4-6/Kg globally.

Notably, the Government, earlier this month, had extended the imposition of the Minimum Import Price (MIP) of US$ 3.50 per Kg on 13 specific HSN codes of synthetic knitted fabrics, up to 31.03.2025.

Khanna, while applauding the Ministry of Textiles & Ministry of Commerce & Industry for imposing a Minimum Import Price (MIP) up to 31.03.2025, informed that that despite the governments’ commendable & relentless efforts to curb these under-priced imports the import quantities have been increasing substantially instead of decreasing, which can be seen by the following numbers.

  • Jan – Mar 2024: 89 Mn kgs
  • Apr-Jun 2024: 81 Mn kgs
  • July – Sept 2024: 130 Mn kgs

The data above clearly indicates that following the implementation of Minimum Import Prices (MIP), importers have shifted their imports to other Non-MIP HS codes within Chapter 60.  This shift has rendered the current method of enforcing MIP on specific HS codes ineffective.

He further outlined that these under-invoiced imports in the textile industry are causing substantial harm, resulting in the closure of dyeing, knitting, and spinning industries. This has led to a loss of over INR 10,000 Crore to the exchequer by evading both direct and indirect taxes.

Strangely, the top importers of Synthetic knitted fabrics are logistics companies, with a majority of imports originating from Nandiambakkam Sez (Chennai).

In conclusion, Khanna humbly appealed to the Prime Minister to intervene in the matter by launching a comprehensive investigation campaign into these instances of under-invoiced Imports of Synthetic Knitted Fabric (under Chapter 60) & Mis-Declaration of HS codes at the Indian ports.

It is crucial that a clear message be conveyed to importers who have blatantly flouted trade regulations, thereby undermining the integrity of the Indian trade system. Their actions not only compromise fair competition but also erode trust in the market.