Cotton Council Pushes for Removal of Import Duty to Boost Indian Textile Industry

The Cotton Council International has urged the Indian government to remove the 11% import duty on short staple cotton to benefit the Indian textile industry. While the duty was lifted for cotton above 32mm in February, it still persists for shorter staple cotton, affecting domestic textile production.

The US industry body Cotton Council International has called on the Indian government to abolish the 11 per cent import duty on short staple cotton. This move is aimed at reducing cotton prices and aiding the Indian textile industry.

In February, the Indian government removed a 10 per cent duty on cotton with a staple length above 32 millimeters (mm), commonly referred to as Extra Long Staple (ELS) cotton. However, the 11 per cent duty on cotton below this length remains in place.

The import duty, implemented on February 1, 2021, comprises five per cent basic customs duty, five per cent tax, and a one per cent social welfare charge.