Scrap import responsibility on cotton because it hurts garment exports, exchange body tells Centre by admin- Tuesday, June 29th, 2021 07:49:39 AM
Our Bureau Reiterating its call for for withdrawal of 10 in line with cent customs duty on cotton imports, alternate frame Cotton Association of India (CAI) has expressed worries of India dropping its competitiveness to China, Pakistan and Bangladesh within the worldwide market. With 10 according to cent customs duty on cotton types including more-long staple (ELS), the export-oriented clothes and cotton-madeups grow to be costlier thereby giving an facet to the close competition.
The 10 per cent customs duty become imposed on cotton imports on February 2, 2021. The CAI has written a letter to the Union Finance Minister Nirmala Sitharaman in search of the withdrawal of duty. In the letter, Atul Ganatra, President, CAI, stated that India produced merely five-6 lakh bales (every of one hundred seventy kg) of ELS type of cotton as towards the neighborhood requirement of about 12 to 15 lakh bales of ELS and approximately five-7 lakh bales of non ELS contamination-unfastened sustainable cotton.
“India hardly produces this kind of cotton and there’s a clear shortfall of the identical. India requires such ELS and contamination-free sustainable cotton not produced in our united states to cater to the global demand. Due to the imposition of 10 consistent with cent import duty on cotton, this raw fabric, that is being imported in India, has grow to be steeply-priced for that reason reducing our competitiveness vis-à-vis other international locations like China, Bangladesh, Pakistan and Vietnam,” Ganatra stated.
CAI has advised the Finance Minister that 10 in step with cent import duty levied on cotton is not in the hobby of the nation because it does more damage than precise and interest of our domestic fabric enterprise might be served better if 10 according to cent import duty levied on cotton is withdrawn right away. The cotton has been beneath Open General License (OGL) Scheme with none quantitative and qualitative regulations for remaining numerous decades.
Moreover, charges of ELS cotton in India are very high and the variety of ELS Kapas charge inside the us of a is in between ₹8,500 to ₹9,000 in step with quintal that is better by means of approximately ₹2,500 or about 30 per cent than the Minimum Support Price (MSP). Therefore, the interest of the farmers is not impacted adversely through removal of 10% import duty on cotton, Ganatra stated. Cotton Association of India believes in unfastened exchange policy each for export and import of cotton and guide no duties to be levied, the letter said.
Emphasising at the urgent want for withdrawal of import obligation, Ganatra stated that if the import obligation isn’t always removed, our home costs will pass up in addition and create extra difficulty to the home textile zone viz. Spinning, weaving and garment industry. Cotton costs in the home markets have already gone up from ₹43,six hundred according to sweet (each of 356 kg of processed ginned 29.Five mm cotton) in January 2021, to ₹51,800 in line with sweet now, indicating almost 20 per cent upward push inside the expenses.