Textile Ministry Multi-Stakeholders' Yesterday Meeting Outcome
18 May 2022, Mumbai:
To give relief to the textile industry, Union Textiles Minister Piyush Goyal held a meeting with the stakeholders of the industry on 17th May.
According to the information, in this meeting, the Textile Minister discussed many issues including giving relief to the textile industry, controlling the ever-increasing prices, and reducing the duty.
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Cotton prices in India have risen due to strong demand from the cotton market, diminishing stockpiles, and a 10% import levy on cotton. In July, the price of cotton increased by $3,800 per confection in 15 days. The sharp rise in prices has thrown the business into disarray and rendered Indian exporters uncompetitive.
The minister said that the import of cotton will be permitted duty-free till the bill of lading is dated September 30 this year and not based on the bill of entry at Indian Ports.
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The government will also form a cotton council that will study all the matters relating to cotton and will start functioning with the membership of all stakeholders and will provide its report to the government on the measures to be initiated immediately.
The minister also announced the formation of a cotton advisory board with representation from the textiles ministry, agriculture, agricultural research, commerce, finance along with industry representatives.
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This comes amid speculation that the government may ban the export of both commodities as a temporary measure to calm down the prices. Among the major suggestions that the industry came out with include a short-term ban on cotton exports, as no farmer is going to get affected.
This is because cotton is now left with the traders only.
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CREDITS: *Zeebiz Business Standard (The news article has not been edited by DFU Publications staff).
