Now Reading: Centre in advanced talks to scrap 11% cotton import duty
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Centre in advanced talks to scrap 11% cotton import duty
A senior official said the government is in an “advanced stage of consultation” to remove the 11 per cent customs duty on raw cotton imports, with the finance, textiles and agriculture ministries…
The Story in Brief
A senior official said the government is in an “advanced stage of consultation” to remove the 11 per cent customs duty on raw cotton imports, with the finance, textiles and agriculture ministries examining the issue. A decision is expected soon. The removal is sought by textile and apparel exporters who met Vice President C P Radhakrishnan and several Union ministers recently. They argued that domestic cotton arrivals this season are estimated at 292.15 lakh bales against a projected requirement of 337 lakh bales, leaving a supply gap of nearly 45 lakh bales that pushes up costs for mills.
The Indian Opinion
The textile lobby wants duty-free cotton to bridge a 45 lakh bale shortfall, but scrapping the 11 per cent levy outright would hit domestic growers who already face low prices. The government must weigh cheap raw material for mills against farmer incomes, especially with sowing season approaching. Will the final decision include a sunset clause or a lower, calibrated tariff that balances both sides?
Source: millenniumpost.in
This story was synthesised by AI from the source linked above.
