Textiles secretary UP Singh told presspersons on Thursday that rising cotton consumption risked India moving away from a cotton surplus position.
When asked about the removal of import duty on cotton, the Secretary said that during the 2021-2022 cotton season, the production of cotton is expected to be 340 lakh bales. With the demand picking up, 1.5 lakh to 2 lakh spindles are added every month in the country and the cotton consumption is expected to be higher this season.
Cotton prices were around 90,000 per candy and are expected to fall in a day or two with the removal of duty. However, the prices will not be much lower as there is scarcity everywhere. He said that the textile industry is demanding removal of import duty.
Southern India Mills Association president Ravi Sam said the government had announced import duty on cotton in the Union Budget last year in the interest of farmers. With the reduction in cotton production and increase in consumption during the current season, the industry may face a shortfall of 40 lakh to 50 lakh bales of cotton and hence, removal of import duty by the end of the season to sustain its performance. demanded. The price of Indian cotton was costlier by 7% to 10% due to import duty. The decision of the government has come at the right time and it will protect the interest of farmers and industry.
Manoj Kumar Patodia, Chairman, Cotton Textiles Export Promotion Council, said the removal of import duty would benefit the entire textile value chain – yarn, fabric, garments and made ups and provide relief to consumers. He hoped that going forward the cotton prices which had reached unreasonable levels would stabilize and the textile industry would be able to increase its exports.
T. Rajkumar, President, Confederation of Indian Textile Industry, said, “This is a welcome decision and will help the entire textile value chain fight the steep rise in the price of cotton due to imposition of 10% customs duty on not only imports of cotton. but also meet the need of specialized cotton (extra-long-staple cotton, organic cotton, colored cotton, etc.) in advanced countries to manufacture high-end products for their specific markets. The cotton crop has already been sold, allowing duty free import of cotton will not affect the Indian cotton farmers.
Prabhu Dhamodharan, Convener of the Indian Texpreneurs Federation said that in the current dynamic and volatile business and business environment, timely intervention of policy decisions is critical to the changing needs. Removal of import duty will help the entire textile manufacturing eco-system, support the overall balance sheet of cotton and also reduce speculative trade.
Federation of Indian Export Organization president A. According to Sakthivel, this will give a huge boost to exports from the apparel and made-up sectors, with the softening of yarn and fabric prices. India has recently increased its market share in apparel exports to the US and several countries. With the support of the government, the textile sector should strive to reach exports of $100 billion by 2030.
Sanjay Garg, President, North India Textile Mills Association said that the demand for withdrawal of import duty on cotton by the domestic textiles sector was a long time coming and would make Indian textile products competitive.