Active Stocks
Tue Mar 19 2024 14:31:08
  1. Tata Consultancy Services share price
  2. 3,986.00 -3.83%
  1. Tata Steel share price
  2. 149.55 -0.03%
  1. Bharti Airtel share price
  2. 1,234.25 0.75%
  1. Power Grid Corporation Of India share price
  2. 260.00 -1.89%
  1. ITC share price
  2. 409.90 -1.80%
Business News/ News / India/  Indian trade body seeks duty-free imports of cotton
BackBack

Indian trade body seeks duty-free imports of cotton

Cotton imports into India, the world's biggest producer of the fibre, attract 11% duty, which makes the imports financially unviable, the Cotton Association of India (CAI) said in a letter to Textile Minister Piyush Goyal

India cotton is nearly 15% more expensive than cotton of other originsPremium
India cotton is nearly 15% more expensive than cotton of other origins

MUMBAI : India needs to allow duty-free imports of cotton as higher raw material prices have reduced textile mills' capacity use, a leading trade body told the government on Wednesday.

Cotton imports into India, the world's biggest producer of the fibre, attract 11% duty, which makes the imports financially unviable, the Cotton Association of India (CAI) said in a letter to Textile Minister Piyush Goyal.

India cotton is nearly 15% more expensive than cotton of other origins, and the higher price has eroded the competitiveness of textile industry and reduced capacity utilization to 50%, the letter said.

"This (scrapping of duty) will help our textile industry to perform with optimum capacity," it said.

Indian traders are struggling to export cotton despite higher production as farmers are delaying the sale of their harvest hoping for higher prices in coming months, industry officials told Reuters.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 08 Dec 2022, 12:50 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App