The Indian textiles ministry has announced a temporary withdrawal of 11% duty on cotton starting from June 1 till October 30. This move is expected to boost cotton availability for India’s textile industry.
The import duty on cotton has been waived off for the second time in the last 12 months. It was removed last year after the US enforced high tariffs on Indian exports.
According to the textiles ministry, the temporary duty withdrawal is projected to reduce production costs and provide relief to manufacturers.
The ministry added that the duty waiver will have a positive impact on the domestic textile industry, particularly SME’s, due to higher availability of cotton
Various textile industry trade bodies have been requesting for withdrawal of the import duty since cotton prices have increased by around 11-15% in the last one month
Both the Apparel Export Promotion Council and the Confederation of Indian Textile Industry (CITI) have welcomed the move to withdraw the customs duty in separate statements.
