The Government has decided to exempt all customs duty on import of cotton to lower the price of cotton in the public interest. This exemption would benefit the textile chain- yarn, fabric, garments and made ups and provide relief to textile industry and consumers. It will temporarily exempt customs duties on cotton imports from the first of next month to 31st October this year.
The Ministry of Textiles, in a notification, said that the decision has been taken keeping the interests of cotton farmers and the entire cotton value chain at the forefront.It added that the measure, implemented during the cotton off-season, will ensure adequate availability of cotton for the textile industry, support MSMEs, moderate input costs, and strengthen the competitiveness of Indian textiles.
The Ministry emphasised that the measure will safeguard the interests of the farmers and ensure market stability.The move is also aimed at improving the availability of cotton for India’s textile industry.According to the Ministry of Finance, the measure is expected to lower input costs across the textile and apparel value chain, providing targeted relief to manufacturers while also benefiting consumers.
The government said the decision has been taken while keeping the interests of domestic cotton farmers in mind.The duty exemption is also expected to support the growth of the domestic textile industry, particularly small and medium enterprises (SMEs), by ensuring an adequate supply of cotton in the market. Officials believe the move will strengthen the sector’s overall performance and enhance its competitiveness during the period of exemption.
The temporary duty exemption is expected to reduce input costs across the textile and apparel sector, thereby providing targeted relief to manufacturers and consumers, while also keeping the interests of domestic farmers in mind. Overall, the measure is anticipated to have a positive impact on the performance of domestic textile industry, especially the small and medium enterprises, ensuring better availability of cotton in the market," the finance ministry said.
Cotton is the dominant input for India's textiles exports, one of the largest items in the export basket."The measure, implemented during the cotton off-season, will ensure adequate availability of cotton for the textile industry, support MSMEs, moderate input costs and strengthen the competitiveness of Indian textiles while safeguarding farmers' interests and ensuring market stability," the textile ministry said.
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