Surat – The issue of imposing a minimum import price (MIP) on imported nylon yarn has sparked sharp debate between spinners and weavers, with both sides presenting their arguments during a video conference convened on Tuesday by Subhra Agrawal, advisor to the Ministry of Textiles.
Spinners argued that cheaper imported yarn was causing significant losses to domestic producers. They have already submitted a memorandum to the Directorate General of Trade Remedies (DGTR), seeking intervention. However, Agrawal directed them to focus only on the MIP matter during the discussions.
Representing the weaving sector, Mayur Golwala, along with leaders of the Nylon Weavers Association and other organizations, challenged the spinners’ claims. He explained that even after purchasing nylon chips at Rs. 160 per kilogram currently, compared to Rs. 200 earlier, spinners were still earning a net profit of Rs. 45 per kilogram at present and Rs. 35 earlier. Golwala added that imported yarn is arriving at Rs. 190–195 per kilogram, which does not substantially cut into the spinners’ margins.
As per agency report, Golwala further highlighted that for the past three years, domestic supply of nylon yarn has consistently fallen short of demand. Against a demand of three lakh metric tonnes, only two lakh metric tonnes are being supplied, leaving little justification for imposing MIP.
The Vedarod Weavers Association warned that introducing MIP on imported yarn could shut down more than 1.5 lakh looms, leaving over two lakh workers unemployed.
After hearing both sides, Agrawal acknowledged that downstream industries such as weaving employ a larger workforce and must also be safeguarded. She noted that while imported yarn often offers superior quality, domestic spinners have struggled to maintain consistent standards. She stressed that a detailed analysis of profit and loss margins of spinners would be required before any decision is made.
During the discussions, some weavers even reached the Ministry of Textiles office in Delhi, drawing attention within industry circles. They accused spinners of spreading misleading price information through WhatsApp groups and urged the government to scrutinize the data presented by them.
The government is now tasked with making a balanced decision on whether to proceed with imposing MIP on imported nylon yarn, weighing the interests of both spinners and weavers.
