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Friday, 21 January 2022

Import duty on cotton may get removed soon…

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Struggling with the skyrocketing price of cotton and cotton yarn, the textile and apparel industry can get some relief soon.

Apparel Resources got to know from industry leaders that import duty on cotton can be removed in the next few days. There is 11 per cent import duty on cotton.

“We have got positive indication from Ministry of Textiles (MoT) in this regard and we are hopeful that that announcement will be made soon,” said a senior representative of an association related to the cotton industry.

He further added that Indian farmers are getting good price of their cotton, and so there shouldn’t be any big issue if the duty gets removed.

The Government brought the levy of 5 per cent basic custom duty, 5 per cent Agricultural Infrastructure Development cess and 10 per cent social welfare cess on both totalling 11 per cent on cotton imports in the 2021-22 budget.

Various stakeholders of the apparel industry are continuously raising this issue and Tirupur has witnessed strikes also in this regard. Even today industry is on hunger strike there on the same issue. MoT has already had many meetings with the various trade bodies and has even warned stakeholders of unprecedented hikes.

CM of Tamil Nadu has also urged to withdraw the cotton duty and written twice to MoT regarding the issue.

If the Government removes the duty, cotton import will definitely increase but at the same time it depends on the price of imported cotton also as high price of cotton is a worldwide phenomenon. Industry experts feel that India can import around 20-25 lakh bales of cotton if the duty is removed.

As per data of Statista, India imported raw cotton and cotton wastes worth approximately Rs. 28 billion in fiscal year 2021 – a significant decline from the previous fiscal year as in FY2020 the same was of Rs. 93 billion.

As per market updates, the prices of cotton stood at Rs. 74,000 a candy on 4 January and was Rs. 77,000 a candy two days ago. It was about Rs. 51,500 a candy in April last year.

Source : https://in.apparelresources.com/
 

 

    
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