Textile and yarn companies want duty-free imports of cotton due to diminishing supply
Textile and yarn companies in India are urging the government to remove the 11% import duty on cotton to alleviate diminishing domestic supplies. Industry representatives argue that the current duty structure is hindering their ability to procure adequate raw materials, impacting production and potentially leading to job losses.
The demand for duty-free cotton imports stems from concerns over dwindling domestic supplies. Unpredictable weather patterns, such as unseasonal rains and droughts, have significantly impacted cotton production in recent years, leading to shortages and price volatility. This has created significant challenges for textile and yarn manufacturers, who rely on a steady supply of cotton for their operations.
By removing the import duty, industry players believe they can access more affordable cotton from international markets, ensuring a consistent supply of raw materials. This, they argue, will help maintain production levels, safeguard jobs, and enhance the competitiveness of the Indian textile industry in the global market.
However, the government has expressed concerns about the potential impact of duty-free imports on domestic cotton farmers. Finding a balance between supporting domestic producers and ensuring the competitiveness of the textile industry remains a key challenge for policymakers.
