India Set to Impose Duty on Cotton Imports
The Cotton Textiles Export Promotion Council has expressed surprise over levy of 10 per cent import duty on raw cotton and urged the government to have a relook at the proposal.
Welcoming the Government move to set up seven textile parks over three years, Manoj Patodia, Chairman of The Cotton Textiles Export Promotion Council, said the move to levy import duty on cotton will make imports of Extra Long Staple Cotton costly, especially GizaCotton from Egypt and Supima Cotton from the US.
Patodia also expressed his apprehension that the levy of import duty on cotton will increase the domestic prices which will now be based on the import parity price plus the basic customs duty.
This, in turn, will push up costs for value-added products like fabrics, made-ups and garments. He also pointed out that there has been a decline in imports of cotton by a sharp 77 per cent between January and November 2020 compared to the same period in 2019 and as such there is no case for an imposition of import duty on cotton.
Source: The Hindu Business Line