Grasim consolidates gain: How curbs on a key input for textiles helped one industry, and hurt several small players.

Syllabus: GS-III, Subject: Economy, Topic: Trade and External Sector, Issue: Import Barriers

Context: India enforced a strict quality control order (QCO) on viscose staple fibre (VSF), a key raw material in the textiles supply chain.

A Quality Control Order is a non-tariff trade barrier that bars manufacturers, importers, and distributors from storing or selling a product without a licence from BIS (Bureau of Indian Standards).

Barriers to imports — tariff or non-tariff — more often than not end up making domestic industry uncompetitive.

Prelims Connect:

1.      VSF(viscose staple fibre) is a semi-synthetic fibre made with cellulose and is used widely in the textiles industry.

2.     Anti dumping duty: It is a tariff or tax imposed by a government on imported goods that are believed to be sold at a price below their fair market value in the importing country.


Bureau of Indian Standards:

  • It is India’s National Standards Body under the Department of Consumer Affairs, within the Ministry of Consumer Affairs, Food & Public Distribution.
  • Established by the Bureau of Indian Standards Act 2016
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