BackWaiver on cotton import duty could be extended to December
Import duty waiver till end-Sep has proven to be ineffective in controlling pricesThe textile ministry said the closing stock of cotton is about 4.12 million bales, equivalent to stocks for 45 days of consumption
PremiumAmid a relentless rise in cotton prices, textile minister Piyush Goyal on Monday asked authorities to take a quick call on whether to extend the waiver of import duty on raw cotton to 31 December from the current cut-off of September.
This follows mounting pressure on the government to intervene in the market amid a surge in cotton prices, hitting textile manufacturers across the country.
“As regards the extension of the period of waiver of import duty up to 31 December textile minister Piyush Goyal directed the authorities concerned to finalize the matter early," the ministry of textiles said.
The import duty waiver till end-September has proven to be ineffective in controlling cotton prices, which has now surged past the ₹1 lakh per bale mark. Prices had doubled in less than a year because of a sharp rise in international demand.
Textiles secretary Upendra Prasad Singh told Mint last month that cotton prices had not softened as the government had expected them to and that the government is evaluating further measures, including a ban on cotton exports till September. The ministry said the closing stock of cotton is about 4.12 million bales, equivalent to stocks for 45 days of consumption. “As per estimates of the Committee on Cotton Production and Consumption, carry over/closing stock is 41.27 lakh bales, which is about 12.66% stock to use ratio and equivalent to stock for 45 days consumption," the ministry said.
Suresh Kotak, chairman of the Textile Advisory Group, stressed the need to ensure seed availability for sowing, especially for new early maturing varieties. According to the statement released by the ministry, Kotak stressed the need to revamp the seed system to enhance the productivity of Indian cotton from the present “stagnation".
Goyal said factors impinging on productivity need to be contained in a time-bound manner and that the industry should “participate in self-regulatory mode".
“The ginning segment should take responsibility and make pheromone trap technology mandatory to monitor and prevent the spread of Pink Bollworm pest attack from ginneries and oil extraction units to cotton crop in farmers’ fields," Goyal said.
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