Textile industry estimates that the duty-free import will not exceed 40 lakh bales during the current season.
Moreover, it will take three to four months’ time for the imported cotton to reach the Indian textile mills. Since the cotton farmers have already sold the cotton crop (of the current season) and are preparing for sowing (for the next season), allowing duty-free import of cotton will not affect the Indian cotton farmers.
Conforming on this, T. Rajkumar, Chairman, Confederation of Indian Textile Industry (CITI) said, “Removal of duty is a welcome decision and will help the entire textile value chain to fight not only the steep increase in the cotton price due to imposition of 10 per cent customs duty on the import of cotton, but also to meet the requirement of specialty cotton (extra-long-staple cotton, organic cotton, coloured cotton, etc.) to manufacture high-end products for their niche markets in advanced countries.”
T. Rajkumar also pointed out that MSME segments, including handloom, powerloom, independent knitting, weaving, processing, garmenting and made-up, which accounts for over 80 per cent of the total exports, have no access for Advance Authorization Scheme and duty-free import of cotton. These are the worst-affected segments, and their capacity utilisation has already dwindled down to below 70 per cent, resulting in huge job losses and a declining trend in the GST revenue.
The Government’s decision to exempt cotton import will boost their sentiments, and help the textile industry to maintain their growth momentum.
Also Read: Cotton import is now duty free till 30 September
Sanjay Garg, President, NITMA said that such an exemption will not only be beneficial to India’s textile chain – yarn, fabric, garments, and made-ups – but also help lower the prices for end-user and providing boost to textile exports.
“The withdrawal of import duty on cotton was sought after for quite a while by the domestic textile sector to stay in the race against the other low-priced textile manufacturing rival nations across the globe,” he said.
Recently industry leaders met the Textile Minister Piyush Goyal and urged for the removal of the duty, apprised about the issues cropping up due to the non-availability of quality cotton to the domestic players at competitive prices.
Also Read: Indian textile and apparel industry in quagmire! 5 industry leaders meet Piyush Goyal
Source : https://in.apparelresources.com/