COIMBATORE: As the dwindling global demand for cotton textile products continues to hit cotton prices, the textile sector has demanded exempting cotton from 11 per cent import duty.
The Indian cotton yarn exports, dropped by almost 50 per cent, while the cotton fabrics and made-ups export dropped by 17 per cent and raw cotton exports plunged by 73 per cent during the year 2022-23, when compared to 2021-22, said Ravi Sam, chairman of The Southern India Mills Association (SIMA).
“The cotton arrival during the current cotton season was less than 60 per cent as on March 31 as against the usual arrival of 85 per cent to 90 per cent for the past several decades,” he said.
“The total Indian textiles and allied products export that recorded US$42.9 billion during 2021-22 dipped to US$35.4 billion during 202223 as a result of declined demand for cotton,” SIMA chief added.
Stating that the Indian cotton trade was taking advantage of 11 per cent of import duty and kept domestic price higher by 8 per cent to 15 per cent which was the root cause for substantial drop in cotton textiles and clothing exports from India, Ravi Sam said as the production capacity across the cotton textile value chain has dropped to the tune of 30 per cent, the demand for home grown cotton also dropped resulting in significant drop in cotton prices in May, this year.
Therefore, it is advisable to exempt ELS cotton from 11 per cent import duty and also other cotton during June to October. It was exempted from duty from April to October 2022. The cotton price which was prevailing at Rs 62,000 per candy on 2 May, 2023 is now ruling around Rs 56,500 per candy,” Ravi Sam said.
