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DGFT Defers Certification for India’s Organic Textiles Exports

The Directorate General of Foreign Trade (DGFT) recently deferred plans that would have made it mandatory for all organic product exports to be certified by the Indian Standard for Organic Textiles (ISOT), according to Business Standard.

Chairman of the Cotton Textiles Export Promotion Council, Texprocil, RK Dalmia, said, “Deferring will give exporters and buyers sufficient time to adopt and adapt to the changes. The step will help toss the fears of buyers, as many weren’t willing to embrace the new procedure.”

On Nov. 18, the DGFT had extended the mandatory certification of organic exports to include finished textile products, like yarn, fabrics, made-ups and garments. Prior to this announcement, certification was only mandatory for organic cotton.

Texprocil encouraged the commerce ministry to extend the Dec. 18 deadline for mandatory certification to allow the industry to adjust to the new standard.

D.K. Nair of the Confederation of Indian Textile Industry said, “The export of organic products would not have been possible with a short notice in the absence of mandatory registration certificates. Since the certificates didn’t exist, there have been no exports of organic textile products from India. But now, exports will be possible, as shipments will start immediately.”

Earlier, Dalmia said carrying out the mandatory certification for finished products would present a challenge to the organic textile sector and lead to a decrease in exports, while Texprocil requested an extension period of at least one year.

As reported in Business Standard, organic products account for 5 to 10 percent of India’s textile exports.