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Govt Steps In to Support Textile Sector Amid Iran War Disruptions

Govt Steps In to Support Textile Sector Amid Iran War Disruptions

New Delhi, April 29: The government has maintained natural gas supply to the textiles and handicrafts sector at 80% of its recent average consumption despite import disruptions linked to the Strait of Hormuz closure, underscoring its priority status due to high employment intensity.

The Ministry of Textiles said public sector major GAIL is sourcing gas from the spot market intermittently to bridge supply gaps and ensure continuity for domestic demand.

To support the sector amid global supply chain volatility, customs duty has been deferred on 29 key textile inputs, with further proposals under consideration for the MMF value chain and cotton. The ministry has also recommended removal or deferment of anti-dumping duties on inputs such as elastomeric filament yarn (EFY) and viscose rayon filament yarn (VFY), citing pressure on downstream MSMEs and employment concerns.

The government is closely monitoring supply conditions across major clusters and engaging regularly with industry stakeholders, including export promotion councils and regional associations. Advisory measures and logistics strategies, including alternate shipping routes and ports, are being disseminated to mitigate the impact of geopolitical disruptions on exports and supply chains.