To relieve the textile industry, the Union government cancels customs duties on cotton imports until September 30
The Union Finance Ministry on Wednesday lifted tariffs on cotton imports until September 30, a move that will benefit the textile industry and lower prices for consumers.
The Central Board of Indirect Taxes and Customs (CBIC) issued a notification in this regard, to grant exemption from April 14. The same will remain in effect until September 30.
Currently, cotton imports are subject to a Basic Customs Duty (BCD) of 5% and an Agricultural Infrastructure Development Tax (AIDC) of 5%. Industry has requested the exemption of customs duties to bring down domestic prices.
“The import of cotton has been completely exempted from customs duties. This exemption will benefit the textile sector – yarns, fabrics, clothing and confections – and will relieve consumers. Textile exports will also benefit,” the ministry said in a statement. The move comes at a time when retail clothing inflation is over 8%.
This exemption will benefit the textile sector – yarns, fabrics, clothing and confections and will relieve consumers. Textile exports would also benefit, the ministry added.
The textile industry sought relief as cotton prices soared to over ₹90,000 per candy.
The Cotton Association of India (CAI) said it had cut its cotton crop forecast by 1.50 lakh bales in its July estimate for 2020-21 in early October to 354.50 lakh bales from the month previous, following lower production exceptions in Gujarat and Telangana. .
(With PTI entries)