Cotton import duties should be abolished in the Union Budget, according to the textile industry
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23 January 2022, Mumbai:
Businesses in the textile industry are seeking and expecting the federal government to eliminate the present 10% import charge on cotton in the next Union Budget for 2023 to assist strengthen the industry.
Cotton yarn imports should be tax-free, according to textile giants, which are pressing for the 10 percent import charge implemented last year to be repealed.
Many textiles-related firms are struggling financially as yarn costs have grown rapidly over the last year. On February 1, the Union Budget will be released, outlining the government's budgetary objectives for each industry.
"The government imposed a 10% customs levy on [the] import of cotton fiber last year, exacerbating the problem," Raymond's lifestyle segment CEO S L Pokharna told ET Retail.
"This responsibility should be revoked in order to facilitate a supply." The sector is eager for the government to find measures to lower local cotton prices, which are at considerable highs due to foreign market sentiment. According to Dollar Industries' managing director Vinod Kumar Gupta, removing the import tariff will lower import prices, which would then lower local pricing.
As part of its 'Make in India' effort to encourage domestic manufacturing, the Union Government chose textiles as one of the main industries to focus on. Textile companies are expecting that the government would take this into account in the future budget.
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