Page 41 - Plastics News December 2025
P. 41
BUSINESS NEWS
QCOS WERE ALSO IMPOSED ON RAW MATERIALS AND
INTERMEDIATE GOODS - SO A ROLLBACK IS WELCOME
uality control orders (QCOs) are qual- istry has extended exemptions of certain steel
ity requirements imposed by the gov- products from mandatory QCO compliance until
Qernment to ensure a minimal specified March 2026.
quality level is maintained. QCO for specified
products requires mandatory certification by an These actions signal a clear policy intent to sup-
appropriate body. Production, import or even port greater openness in trade, and to allow
trade is illegal without such certification. larger firms to face greater competitive pres-
sures emanating from the world. This rescinding
Instruments similar to QCOs are increasingly be- will enable greater availability of inputs, reduce
ing used by countries across the world to pro- costs for both export and domestic markets,
tect their domestic industry. But India has gone and ease supply-chain bottlenecks, particularly
over and beyond most. So much so that what for MSMEs.
was meant to protect has been causing harm
across sectors. Both trade and industry, specially So, why are small entrepreneurs and traders
MSMEs, have been complaining about the over- most harmed by QCOs? Because they are less
use of QCOs for some time now. To the credit of able to bear certification costs and other re-
concerned departments, an important first step quirements, as well as absorb the delays in the
has been taken not in one but across four cen- process.
tral ministries.
According to a recent CSEP study, as of De-
On November 12, Union chemicals and petro- cember 2024, about half of all QCOs were im-
chemicals ministry rescinded 14 QCOs on several posed on raw materials and intermediate goods.
key input materials, including terephthalic acid, Such measures increase supply-chain risks for
ethylene glycol, polyester yarns and fibres, and downstream industries that depend on timely
major plastics such as polypropylene, polyeth- and competitively priced inputs. In this regard,
ylene, polyvinyl chloride (PVC) homopolymers, the recent withdrawal and exemption of QCOs
acrylonitrile butadiene styrene (ABS) and poly- specifically on intermediate goods is precisely
carbonate. The next day, ministry of mines re- what's required.
voked QCOs on aluminium and aluminium alloys, The analysis further revealed that QCOs on in-
nickel, refined nickel, tin ingots, refined zinc, cop- termediate inputs led to an import decline of
per and primary lead.
around 30%, over three years after implemen-
On November 18, textiles ministry rescinded tation, without any significant long-term export
QCO on viscose staple fibre (VSF), a critical in- gains for affected products. This evidence sug-
termediate for the textile value chain. Further, gests that these regulations were disrupting
as per a November 20 notification, steel min- supply chains, rather than supporting develop-
ment of domestic capacity for production of
December 2025 PLASTICS NEWS 41
