Whalesbook
Traders Demand QCO Withdrawal
Fastener traders are demanding the government scrap its new Quality Control Order (QCO). They argue the regulation is crippling businesses, citing escalating costs and severe supply disruptions that directly impact production nationwide.
Certification Bottlenecks Hit Production
The core objection is the QCO's rigid "one-product-one-licence" system. Traders contend this approach is ill-suited for fasteners, which are produced in small batches using the same machinery. This leads to duplication, significant delays, and uncertainty.
Shaunak Rungta, Central Executive Committee Member for the Federation of Indian MSMEs (FISME), highlighted the critical shortage of specific quality cross-recessed screws, such as drywall and chipboard screws, currently unavailable domestically. "The QCO has already reduced my firm's turnover by around 50 per cent, and continued delays risk closure," Rungta stated, urging the government to withdraw the order to prevent wider damage to Indian manufacturing.
Imports Crucial for Manufacturing Competitiveness
Port delays, worsened by confusion over Harmonised System (HS) codes, also increase uncertainty and transaction costs. Fastener trader Yusuf Unjahawala added that mandatory Bureau of Indian Standards (BIS) certification negatively impacts the broader manufacturing sector.
Traders argue the QCO benefits only a select group of manufacturers, sidelining traders essential for supply chain flow. Fasteners, including bolts, nuts, screws, washers, and studs in countless variants, are vital inputs for sectors from automotive and construction to electronics and railways.
The think tank GTRI noted India imports about USD 1.13 billion in fasteners annually, mainly from China, Japan, South Korea, and Germany. These imports often include high-precision or technology-intensive parts crucial for advanced manufacturing. GTRI Founder Ajay Srivastava emphasized that while fasteners are less than 1% of final product costs, their unavailability can stop entire production lines. He stressed policies must ensure seamless trade to maintain manufacturing competitiveness.