Relief in polyester user chain as govt eases quality norms

The Centre has withdrawn quality control orders (QCOs) on a wide range of polyester and petrochemical inputs, in a move that spells relief for user industries such as apparel and footwear, while raising competition from imports for local manufacturers of these key inputs.

- Dhirendra Kumar & Rituraj Baruah

QCOs issued by the Bureau of Indian Standards (BIS) subject manufacturers and importers of specific goods to certain standards. While they ensure greater quality, they also raise costs, which cascade down to industries which use these raw materials.

The order from the department of chemicals and petrochemicals comes after a Niti Aayog committee led by former cabinet secretary Rajiv Gauba recommended relaxing QCOs. These orders raise costs for micro, small and medium enterprises (MSMEs), which import them in large quantities.

While the withdrawal will make raw materials accessible for makers of textiles and PVC products, it may impact manufacturers such as Reliance Industries Ltd, Indian Oil Corp. Ltd and the Aditya Birla Group companies Grasim and Thai Acrylic Fibre.

Queries sent to Indian Oil and the Aditya Birla Group remained unanswered.