The government is in an “advanced stage of consultation” regarding the 11 per cent customs duty on imports of raw cotton, and examining if the levy can be removed, with a decision expected soon, a senior official said.
Ministries, including finance, textiles and agriculture, are deliberating on the duty, with the textile industry seeking its removal to mitigate cost pressures on domestic companies due to high prices.
“We are talking to finance and agriculture (ministries), both, and it is in an advanced stage of consultation. We hope that the consultation will be finalised in the near future,” the official added.
A delegation comprising apparel industry representatives and exporters met Vice President CP Radhakrishnan and several ministers recently and sought the removal of the duty.
The delegation argued that the textile industry’s cotton requirement for the current year is projected at around 337 lakh bales, whereas cotton arrivals for the 2025-26 season are estimated at 292.15 lakh bales, resulting in a supply-demand gap of nearly 45 lakh bales.
Source from: https://manufacturing.economictimes.indiatimes.com/news/industry/decision-on-cotton-import-duty-soon/131304609
