India Slashes Import Duty on Cotton
April 18, 2022 The Government of India slashed the import duty of cotton for a 5 ½-month period effective April 14, 2022.
Members of the Indian textile industry has been calling on the Government to allow duty free import of cotton to stay competitive against other low-cost textile manufacturing countries. On April 13, the Ministry of Finance of India announced that there will be no import duty on cotton for a period beginning April 14 until September 30.
This news is welcomed by the Indian industry. Gandhiraj Krishnasamy, General Manager of Lakshmi Card Clothing in Coimbatore, stated that this news is a welcoming one. He noted that this support from the government will help influence the domestic cotton market to offer cotton at a competitive price.
Indian mills have already been paying attention to cotton from the High Plains of Texas and Australia, and this concession from the Government will help the textile industry to stay competitive.
Velmurugan Shanmugam, General Manager of Aruppukkottai-based Jayalakshmi Textiles cotton spinning mill, stated that the 11% import duty has been making the industry less competitive and that mills would benefit with a waiver. Jayalakshmi Textiles will be receiving a consignment of 300 tons of United States cotton this May. Krishnasamy said this exemption will benefit the entire textile chain and provide relief to consumers.
This news will serve as a timely gift by the Indian Government for the Tamil New Year celebration in the State of Tamilnadu, which has the highest number of spinning mills in India.
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