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Published
Jan 21, 2022
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Textile players urge government to scrap cotton import duty in Union Budget

Published
Jan 21, 2022

Textile industry businesses are both hoping and expecting that the central government will scrap the current 10% import duty on cotton in its upcoming Union Budget for 2023, to help boost the sector. 

Cotton yarn prices rose swiftly last year - Archivo


Textile majors are calling for cotton yarn imports to be made duty-free by scrapping the 10% import duty which was introduced last year, ET Retail reported. As yarn prices have risen swiftly over the past year, many textiles-related businesses are struggling financially. The Union Budget is scheduled to be published on February 1 and will outline the government’s financial plans for each industry.
 
“This crisis was accentuated because the government had last year levied 10% customs duty on [the] import of cotton fibre,” Raymond’s lifestyle business CEO, S L Pokharna, told ET Retail. “In order to ease a supply, this duty should be revoked.”  

With domestic cotton prices at significant highs due to the international market sentiment, the industry is keen for the government to find ways to bring them down again. Removing the import duty would make imports cheaper and this would in turn bring down domestic prices, according to textile business Dollar Industries’ managing director Vinod Kumar Gupta. 
 
The Union Government had identified textiles as one of the key industries to focus on as part of its ‘Make in India’ campaign to boost domestic production. Textile businesses are hoping the government thus favours the industry in its upcoming budget 

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