The Ministry of Finance of India has announced that there will be no import duty on cotton for the period of April 14, 2022 through September 30, 2022.
This news is welcomed by the Indian textile industry, which has been making calls to the government to allow duty-free import of cotton to stay competitive against other low-cost textile manufacturing countries. In speaking with this scribe, Mr. Gandhiraj Krishnasamy, general manager of Coimbatore-based Lakshmi Card Clothing stated that this support from the government will exert influence on the domestic cotton market to offer cotton at a competitive price.
Mills have been paying attention to cotton from the high plains of Texas and Australia, and this concession from the government will help the textile industry stay competitive.
Adding to this sentiment, Mr. Velmurugan Shanmugam, General Manager of Aruppukkottai-based Jayalakshmi Textiles cotton spinning mill, stated that the 11 percent import duty has been making the industry less competitive and mills would benefit from a waiver. Jayalakshmi Textiles will be receiving a consignment of three hundred tons of United States’ cotton this May. This exemption will benefit the entire textile chain and provide relief to consumers.