Textile associations welcome recommendation for removal of cotton import duty

COIMBATORE: Textile industry associations have welcomed the recommendation of the office of the textile commissioner to the Union ministry of textiles that the 11% duty on cotton imports be removed from April to September every year for the next five years.

Associations said the move would create a level playing field and help address cotton shortage and its impact on the 35 million people directly employed across the cotton value chain.

A senior ministry official, who interacted with industry representatives during a meeting in Coimbatore on Thursday, said the decision had been taken at a recent meeting of the Committee on Cotton Production and Consumption in Mumbai. The panel decided to recommend suspension of the import duty after receiving representations from the consuming industry. The proposal is now with the ministry of textiles for consideration.

On the industry’s demand for reducing the hank yarn obligation, the official said an order might be issued by the end of this quarter or early next quarter, reducing the obligation for textile mills.

The official said the Textile Expansion and Employment Scheme and the Tex Eco schemes, which are expected to spur investments in the sector, are likely to be implemented from August-September.