8 months ago
CAI Urges Removal of 11% Cotton Import Duty
The Cotton Association of India (CAI) wants the government to remove the 11% tax on importing raw cotton.
They say this tax makes it hard for Indian textile companies to compete because their cotton is more expensive.
The CAI believes removing the tax will help the industry get better materials, create jobs, and make Indian textiles more competitive worldwide.
They also point out that bad weather has hurt the quality of Indian cotton, making imports even more necessary.
The government is also working on making customs rules simpler and more efficient to help businesses.
The Cotton Association of India (CAI) urges the government to remove the 11% customs duty on raw cotton imports.
The current duty-free period for raw cotton imports is until December 31, 2025.
The Indian textiles industry is struggling due to high costs, US tariffs, and recession in Europe.
Removing the import duty is seen as a way to make the industry more competitive and prevent job losses.
The government is also planning to streamline the customs regime to reduce costs and improve efficiency.
- Who
- Cotton Association of India (CAI) and Indian textiles industry
- What
- Urging the government to remove the 11% customs duty on raw cotton imports
- Where
- India
- When
- Current duty-free period until December 31, 2025
- Why
- To support the struggling textiles industry, improve competitiveness, and prevent job losses
Key facts
- Organization
- Cotton Association of India (CAI)
- Current Duty
- 11% on raw cotton imports
- Duty-Free Period
- Until December 31, 2025
- Projected Cotton Imports
- 50 lakh bales (2025-26 season)
- Domestic Cotton Crop
- 309.5 lakh bales (2025-26 season)
- Domestic Consumption
- 295 lakh bales (2025-26 season)
- Impact of Unseasonal Rains
- Damage to cotton quality
- Government's Reform Goal
- Streamline customs regime to reduce costs and improve efficiency
Quotes
Vinay N Kotak
President of the Cotton Association of India (CAI)
“Current market challenges driven by lower domestic productivity and high minimum support price (MSP) have made the Indian cotton costly compared to other competing international growths. The 11 per cent import duty levied on cotton not only distorts the prices but also compounds the misery of our textile industry.”
thehindubusinessline.com
“While farmers are already protected through MSP, it is time to protect the textiles industry by removal of 11 per cent import duty, which makes it access competitive raw material. If textiles industry is not supported presently, it may immediately lead to unemployment, defaults in the loans and increase in bad debts in the entire textile value chain.”
thehindubusinessline.com
Prabhat Ranjan
Senior director at Nexdigm, a business and professional services company
“The customs duty simplification drive is expected to centre on reducing the multiplicity of duty slabs, easing import costs for raw materials and creating a more predictable and technology-enabled compliance framework.”
livemint.com
Sources
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