In a major policy reversal to support the textile industry's global competitiveness, the Ministry of Textiles has immediately rescinded the Quality Control Order (QCO) on Viscose Staple Fibres (VSF). The notification, published on November 18, 2025, reverses the 2022 order that mandated Bureau of Indian Standards (BIS) certification for VSF imports. This strategic move, following a similar rollback for the polyester value chain, directly addresses the industry’s concerns over high raw material costs and supply constraints.
Price war and supply chain relief
The QCO had acted as a non-tariff barrier, granting a 10-12% price premium to the sole domestic VSF producer and causing imports to plummet by 65% since April 2023. The market re-opening will facilitate an immediate inflow of cheaper VSF from global suppliers like China and Indonesia, forcing a convergence of domestic prices with international rates. As VSF—the second-largest Man-Made Fibre (MMF)—becomes cheaper, it increases the competitive pressure on Polyester Staple Fibre (PSF) and makes Poly-Viscose (P-V) blends more cost-effective for garment manufacturers. The overall reduction in MMF costs is expected to significantly improve the global cost competitiveness of Indian textiles, aligning with the Vision 2030 goal of achieving $100 billion in textile exports.
Industry leaders have hailed the decision as a "path-breaking reform," critical for ensuring seamless access to raw materials and driving growth toward the government's target of a $350 billion textile business.
