New Delhi: The government on Saturday announced a five-month duty exemption for all cotton imports into the country, aimed at bringing down prices and ensuring that the domestic apparel and textile industry remains in a strong position.The relaxation will be available from June 1 to October 31, the ministry said in a notification amid industry demand to ensure adequate supply at reasonable cost.“The temporary duty exemption is expected to reduce input costs in the textile and apparel sector, thereby providing targeted relief to manufacturers and consumers, while also keeping in mind the interests of domestic farmers. Overall, this measure is expected to have a positive impact on the performance of the domestic textile industry, especially small and medium enterprises, thereby ensuring better availability of cotton in the market,” the Finance Ministry said.Cotton is the major input for India’s textile exports, which is one of the largest commodities in the export basket.“This measure, implemented during the cotton off-season, will ensure adequate availability of cotton for the textile industry, support MSMEs, control input costs and strengthen the competitiveness of Indian textiles while protecting the interests of farmers and ensuring market stability,” the textile ministry said.The industry appeared relieved. “This will bring down cotton prices and thus reduce input costs in the textile and apparel sector, thereby providing much-needed relief to micro, small and medium enterprises in the downstream industry, which are facing challenges due to sharp rise in cotton and yarn prices. This timely intervention will also help the apparel industry maintain its export competitiveness in cotton-based products,” said Mithileshwar Thakur, general secretary, Apparel Export Promotion Council.The Confederation of Indian Textile Industries (CITI) said the 11% import duty on cotton was acting as a major hurdle for the Indian textile and apparel sector as major Asian competitors had duty-free access to cotton.“Cotton imports are largely based on quality and specifications, meeting special requirements and back-to-back export orders. They do not displace domestic cotton,” CITI Chairman Ashwin Chandran said in a statement.
