cotton industry

Spinners Body hails REMOVAL OF Import duty on long staple cotton.

Published: February 20, 2024

Indian Spinners Association (ISA) welcomes removal of custom duty on import of long staple cotton having staple length exceeding 32 mm.

Import of all varieties of cotton, currently attracts 5% basic custom duty and 5% Agriculture and Infrastructure cess making a total import duty of 11%. This pushed local cotton prices upwards, making them higher than imported cotton, and thus affecting India’s strength in textile. Textile Industry has been demanding the removal of this duty so that they can get a level playing field against other international spinners. By removing the import duty on long staple cotton, govt has taken first step to mitigate the hardships of Indian Spinning Industry. As the demand for premium premium products is on rise Industry will be able to import long staple cotton at competitive rates. Long staple fiber is largely used for value added products exporters like high end cotton garments and bed sheets.

Mr. Prashant Mohota, President, ISA thanks Shri Piyush Goyal, H’ble Minister of Commerce & Textile for his bold decision along with Smt. Nirmala Sitaraman, H’ble MOF for her support. Mr Mohota, expects that the import duty on regular Cotton will also be shortly removed as per the policy of not taxing basic Raw Material so as to ensure Value addition within the country. This bold decision of the Govt will provide much needed relief to Indian Cotton Textile Industry and will ensure some employment restored back.

Related Posts

Threshold limit of tax-free interest on PF contribution is now Rs 5 lakhs.

Pakistan’s textile industry gets a financial boost from Germany.