The Ministry of Textiles confirmed that despite import disruptions from the closure of the Strait of Hormuz, the textiles and handicrafts sector continues to receive 80% of its average gas supply from the past six months. GAIL, the public sector gas utility, is sourcing additional supplies from the spot market to meet any domestic demand during supply interruptions. The ministry is closely monitoring supply levels in various clusters and will engage with GAIL for spot market purchases if shortages arise.
The government has prioritized the textiles and handicrafts industry due to its significant employment contribution. To support the sector amidst supply chain challenges caused by geopolitical issues like the Middle East conflict, customs duty on 29 essential textile inputs has been deferred. The Textiles Ministry is also pushing for the removal of customs duty on other critical inputs, including the MMF value chain and cotton, to ensure supply chain stability.
In response to concerns about price fluctuations and supply chain disruptions in the downstream industry, the ministry is advocating for the removal of customs duty on inputs in the textiles and handicraft sector. Following an internal analysis considering factors like employment, MSME participation, and supply chain disruptions, the ministry has recommended the removal or deferment of anti-dumping duty on specific inputs like elastomeric filament yarn (EFY) and viscose rayon filament yarn (VFY).
Regular meetings are being held by the ministry with stakeholders, including Export Promotion Councils (EPCs), domestic associations, regional cluster associations, and state government officials, to monitor the situation. Various outreach programs and consultations are being organized to address logistics challenges and ensure resilience in the sector. Advisories from DG Shipping regarding shipping issues are being shared with stakeholders, including information on alternative ports like Jeddah for supplies to West Asia.
