Cotton body seeks withdrawal of 10% customs duty

India produces merely 5 to six lakh bales of ELS (extra-long staple) cotton, towards the precise requirement of about 12 to15 lakh bales, and about 5 to 7 lakh bales of non-ELS contamination-free sustainable cotton, he stated.

The Cotton Affiliation of India (CAI) has reiterated its request to the federal government to withdraw 10% customs responsibility imposed on cotton since February 2 this yr.

In a letter addressed to finance minister Nirmala Sitharaman, CAI president Atul S Ganatra stated cotton has been beneath the open normal licence (OGL) scheme with none quantitative and qualitative restrictions for final a number of many years.

India produces merely 5 to six lakh bales of ELS (extra-long staple) cotton, towards the precise requirement of about 12 to15 lakh bales, and about 5 to 7 lakh bales of non-ELS contamination-free sustainable cotton, he stated.

“India hardly produces one of these cotton and there’s a clear shortfall of the identical. India requires such ELS and contamination-free sustainable cotton which isn’t produced in our nation to cater to worldwide demand,” Ganatra stated.

Ganatra stated resulting from imposition of 10% import responsibility on cotton, uncooked materials has change into pricey, which is decreasing India’s competitiveness vis-à-vis international locations like China, Bangladesh, Pakistan and Vietnam.

Furthermore, costs of ELS cotton in India are very excessive and the vary of ELS kapas fee is in between Rs 8,500 and Rs 9,000 per quintal, which is greater by about Rs 2,500 i.e. about 30% greater than the minimal help worth (MSP), he stated.

“Due to this fact, the curiosity of the farmers gained’t be impacted adversely by elimination of 10% import responsibility on cotton. If the import responsibility will not be eliminated, home costs will go up additional and create extra hardship to the home textile sector,” Ganatra stated.