Latest news with #QualityControlOrder
The Hindu
9 hours ago
- Business
- The Hindu
Steel sector expects pain as government gives less than one day to comply with quality order
A new notification by the Ministry of Steel on quality certifications for steel inputs has given industry players less than one business day to comply with it and stands to create huge disruptions and cost escalations for Micro, Small, and Medium Enterprises (MSMEs) in the sector, according to steel industry participants and trade experts. The notification — released on June 13 — extended the Ministry of Steel's Quality Control Order (QCO) on steel and steel products to the inputs that go into the making of these products too. This means that the input and raw materials used to make steel and steel products, including imports, will also have to conform to the relevant standards issued by Bureau of Indian Standards. Indian steel, aluminium exports to take a hit with as Trump mulls doubling tariff to 50% For example, if a company in Malaysia supplies steel slabs to a Vietnamese company, which in turn processes them into sheets and exports those to India, both the Malaysian as well as Vietnamese firms will now need to be BIS-compliant. According to Panckaj N. Umrania, Executive Director at KND Steel, this requirement will not only increase the compliance burden, but will also increase costs for steel importers. 'What will happen in the industry is that a lot of manufacturers will struggle to import now,' Mr. Umrania told The Hindu. 'So, their production will be hampered, their customers will be hampered, delays will occur. So, a lot of disruption, I personally see, is going to happen.' Government imposes 12% safeguard duty on certain steel products for 200 days 'There is also no support available as such from the government,' he added. 'So, you have to run pillar to pillar (to obtain the paperwork). And, of course, there is a lot of cost also in order to get these things done.' He added that, once the Indian importers start asking for documentation and certifications from their sellers abroad, then these sellers will increase the price of their supplies. 'It's a problem for importers, especially those who are importing semi-finished goods,' Pankaj Chaddha, chairman of the Engineering Exports Promotion Council of India said. 'It will impact the MSME importers in a big way.' Apart from the compliance burden itself, the problem with the latest notification is that it has not provided enough time to businesses to comply. According to the notification, it would be effective for all steel imports that have a bill of lading dated on or after June 16, 2025. 'Effectively, Indian importers were not given even one working day — between the order's date being June 13, 2025 (Friday) and announcement date (over mail and SIMS portal) on June 16 (Monday) — to ensure full compliance,' Ajay Srivastava, former Director General of Foreign Trade and founder of the Global Trade Research Initiative (GTRI) said. According to Mr. Umrania, even a month's notice would not have been enough time, since processes related to the steel industry take a long time. 'So, just giving a notification on the 13th and saying that we will start applying the rules and regulations starting from 16th is definitely not enough time,' he said.
Mint
16 hours ago
- Business
- Mint
From JK Paper to West Coast Paper Mills... paper stocks could be in focus on Friday; here's why
Several paper stocks, including JK Paper, West Coast Paper Mills, Seshasayee Paper & Boards, Andhra Paper, Tamil Nadu Newsprint & Papers and Orient Paper, are likely to be in focus on Friday amid reports that the Indian government may tighten controls on substandard paper product imports. Mint reported earlier, quoting sources that "India is set to tighten controls on substandard paper product imports, particularly from China, with the Department for Promotion of Industry and Internal Trade (DPIIT) in the process of introducing a new Quality Control Order (QCO) for a wide range of commonly used paper products." India's imports of paper and paperboard rose from 1.08 million tonnes in FY21 to 2.06mt in FY25. According to the Mint report, in FY25, imports of paper and paperboard from China recorded a 33 per cent jump in volume, and the Asean countries of South East Asia accounted for about 20 per cent of total imports. In value terms, overall imports touched nearly $1.81 billion during the year, with China's share amounting to about $800 million. A curb on substandard paper product imports could augur well for domestic paper manufacturing firms. Several paper stocks have seen healthy gains in the recent past despite stock market volatility amid prevailing global uncertainties. Shares of Agio Paper have surged 72 per cent over the last three months, while those of NR Agarwal Industries have jumped 55 per cent in the same period. Stocks such as Astron Paper & Board Mill, Shree Rama Newsprint, Tamil Nadu Newsprint, West Coast Paper, Orient Paper, JK Paper and Andhra Paper have jumped 10-35 per cent over the last three months. Read all market-related news here Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
Mint
20 hours ago
- Business
- Mint
India to curb Chinese substandard paper imports with new QCO amid rare earth magnet imbroglio
New Delhi: India is set to tighten controls on substandard paper product imports, particularly from China, with the Department for Promotion of Industry and Internal Trade (DPIIT) in the process of introducing a new Quality Control Order (QCO) for a wide range of commonly used paper products, said two people directly involved in the process. This mandatory quality certification will be applicable to writing and printing paper, coated paper, and boards used for packaging by the consumer products industry. This comes in the backdrop of supply concerns following China's move to halt exports of rare earth magnets, a key component of electric vehicles, to India and other countries. Also read: Eicher, Maruti to TVS Motor: Auto stocks jump up to 2% on reports India may turn to Australia for rare-earth magnets Once the QCO comes into force, import consignments will be subject to BIS (Bureau of Indian Standards) certification requirements, leading to delays in customs clearance and higher compliance costs for foreign suppliers. India sources a substantial amount of coated and uncoated paper from China, Indonesia, and S Korea. India's imports of paper and paperboard have been steadily rising over the past five years, according to data from the commerce ministry. Imports rose from 1.08 million tonnes in FY21 to 2.06mt in FY25. In FY25, imports of paper and paperboard from China recorded a 33% jump in volume, and the Asean countries of South East Asia accounted for about 20% of total imports. In value terms, overall imports touched nearly $1.81 billion during the year, with China's share amounting to about $800 million. 'Cheap imports are having a serious negative impact on the domestic paper industry, making many small and medium-sized mills commercially unviable," said the first of the two people cited above. 'Out of over 850–900 paper mills in the country, only around 550 are currently operational. This is a significant setback for a sector that has traditionally supported a large number of rural and small-scale livelihoods," said this person, a senior DPIIT official. Also read: Mint Impact: India plugs the loophole that allowed gold importers to evade duty According to Rohit Pandit, secretary general of the Indian Paper Manufacturers Association (IPMA), 'Indian consumers deserve quality products, whether manufactured domestically or imported. QCOs for different products ensure the supply of quality products to Indian consumers, prevent unfair trade practices, and check the import of substandard products into the country." 'To make India globally competitive in the world market, the government has been emphasising the need for the domestic industry to manufacture high-quality products. IPMA has been pursuing with the government the need to issue QCOs for different grades of paper," said Pandit. 'We have informed the members of the World Trade Organization (WTO) about the upcoming QCO. Once it is approved, the quality standards will be notified, allowing a six-month transition period for large manufacturers to comply with the norms," said the second official cited above. 'However, small enterprises will be given nine months, and micro enterprises will get up to twelve months to align their production with the QCO requirements," the official added. The QCO is also part of the government's broader initiative to bring more than 1,500 products under stringent quality standards by the end of the current financial year under the supervision of the BIS, as reported by Mint on 10 February. An exercise to improve product quality spanning 37 ministries is currently under way, as per the Mint report. Currently, 761 products are regulated by so-called QCO that mandate strict parameters for both domestic and imported goods. Some of the items already covered under QCOs in India include household and industrial appliances such as coffee makers, shavers, electrical appliances, vacuum cleaners, stainless steel utensils, toys, hot-rolled and cold-rolled steel strips, and medical devices. Also read: Rare earths: China is choking its own prospects of leadership The expansion of the QCO regime could bring items such as wheelchairs, full-body harnesses, self-locking gates, artificial limbs, sanitaryware, and ceramic tiles under these standards. QCOs are enforced by the BIS, an arm of the consumer affairs ministry. Once a QCO is notified, no firm can manufacture, import, distribute, sell, hire, lease, store, or exhibit any product covered under the QCO without an ISI (Indian Standards Institute) mark. Violations can attract jail terms and fines.
Time of India
6 days ago
- Business
- Time of India
Centre defers QCO on textile machinery to 2026
Surat: The ministry of heavy industries, Govt of India, has extended the implementation of the Quality Control Order (QCO) on textile machinery to Sept 2026. The QCO was earlier scheduled to be enforced from August 2025, but various industry stakeholders, including textile manufacturers, had raised concerns. On August 28, 2024, the ministry had issued the Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order 2024, making the QCO mandatory for weaving and embroidery machines, including their assemblies and sub-assemblies. The Southern Gujarat Chamber of Commerce and Industry (SGCCI), under the leadership of its immediate past president Vijay Mevawala, had made several representations to the Centre. "This will benefit the industry, and the growth cycle will continue in the textile sector in the region. We thank the govt for considering trade and industry's viewpoint," said Mevawala. SGCCI president Nikhil Madrasi added, "This decision enables Indian manufacturers to produce high-speed weaving and embroidery machinery on par with imported ones, furthering the ' Make in India ' vision." Recently, SGCCI vice-president Ashok Jirawala, former president Ashish Gujarati and other industrial bodies met Union minister for heavy industries HD Kumaraswamy in New Delhi to urge deferment of the QCO. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top 5 Dividend Stocks for May 2025 Seeking Alpha Read Now Undo They argued that Surat, the country's largest MMF textile hub, annually imports 2,500 to 4,000 high-speed weaving and embroidery machines, many of which are not yet made domestically. Given that MMF continues to dominate textile investments — particularly in waterjet, airjet, and rapier machines — the industry had sought time until domestic manufacturing capacity matched import quality. The Centre's latest decision comes as a major relief for the sector. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
Fibre2Fashion
27-05-2025
- Business
- Fibre2Fashion
India's loom QCO faces industry pushback ahead of deadline
India is set to implement the Quality Control Order (QCO) for weaving machines (looms), their assemblies, sub-assemblies, components, and all types of embroidery machinery from August 28, 2025, following the expiry of a one-year gestation period. Just three months ahead of implementation, the Southern Gujarat Chamber of Commerce and Industry (SGCCI) has demanded the removal of the QCO. It is worth noting that a notification was issued on August 28, 2024, regarding the implementation of the QCO on textile and embroidery machines and their components. The government had provided a one-year period for the industry to make the necessary preparations. India plans to enforce QCO on weaving and embroidery machines from August 28, 2025. The SGCCI has urged the government to withdraw the QCO, citing heavy reliance on imported machinery and potential financial losses. SGCCI argues that the regulation could hinder the textile sector's growth and technological advancement, particularly as India targets a $350 billion market by 2030. Recently, SGCCI vice president Ashok Jirawala and former president Ashish Gujarati presented the matter in a meeting with India's Minister for Heavy Industries, H D Kumaraswamy, and joint secretary Vijay Mittal in New Delhi. They pleaded for the removal of the QCO. The meeting was convened by the Ministry of Heavy Industries and attended by various industry organisations. SGCCI has formally urged the central government to remove the QCO from textile machinery, citing concerns about its potential impact on the sector's growth and technological progress. SGCCI representatives argued that India's current textile market is valued at $165 billion and is projected to reach $350 billion by 2030. To achieve this target, the industry will need approximately 4.5 lakh high-speed weaving machines, requiring an estimated investment of $15 billion. As several of these machines are not manufactured in India, imports are essential. SGCCI also noted that embroidery technology evolves rapidly, with machinery often needing upgrades every two to three years. Since many advanced machines are not produced domestically, Indian entrepreneurs rely heavily on imports. They, therefore, emphasised the need to exclude embroidery machinery from QCO regulations. Gujarati told Fibre2Fashion , 'Such textile machinery imports are essential as several types of machines are not manufactured locally. We are heavily dependent on imported machines. A large number of textile units have opened Letters of Credit (LCs) and booked machines from abroad. If the QCO is not removed and comes into effect on August 28, 2025, the imported machinery will be held at ports, resulting in significant financial losses. Furthermore, banks may hesitate to finance such ventures, potentially slowing industrial growth.' Gujarati further informed that following the presentation, Kumaraswamy and the joint secretary of the ministry responded positively and assured that the concerns of the user industry would be considered. Fibre2Fashion News Desk (KUL)
