Cotton consumption increases, industry welcomes decision to remove import duties


With rising cotton consumption, India was in danger of moving away from the cotton surplus situation, Textiles Secretary UP Singh told reporters on Thursday.

Asked about the removal of import duties on cotton, the secretary said cotton production in the 2021-2022 cotton season is expected to be 340 lakh bales. With the increase in demand, 1.5 lakh to 2 lakh spindles are added every month in the country and cotton consumption is expected to be high this season.

Cotton prices were around ₹90,000 per candy and are expected to drop in a day or two with the removal of duties. However, the prices will not be very low because there is a shortage everywhere. The textile industry has called for the removal of import duties, he said.

Southern India Mills’ Association President Ravi Sam said the government announced the import duty on cotton in the Union budget last year for the benefit of farmers. With the reduction in cotton production in the current season and the increase in consumption, the industry is likely to face a shortage of cotton bales of 40 lakhs to 50 lakhs and, as a result, d demand the removal of import duties until the end of the season to maintain its performance. Indian cotton price was 7% to 10% more expensive due to import duty. The government’s decision comes at the right time and will protect the interests of farmers and industry.

Chairman of the Cotton Textile Export Promotion Council, Manoj Kumar Patodia, said the removal of import duties will benefit the entire textile value chain – yarns, fabrics, garments and garments and relieve consumers . He hopes that in the future cotton prices which have reached unreasonable levels will stabilize and that the textile industry will be able to increase its exports.

T. Rajkumar, Chairman of the Confederation of Indian Textile Industry, said: “This is a welcome move and will help the entire textile value chain to combat not only the sharp rise in the price of cotton due to the imposition of 10% customs duties on cotton imports but also to meet the needs of specialty cottons (extra-long staple cotton, organic cotton, colored cotton, etc.) to manufacture high-end products for their niche markets in advanced countries. Since the cotton growers have already sold their cotton crop of the current season, allowing cotton to be imported duty free will not affect Indian cotton growers in any way.

Prabhu Dhamodharan, President, Federation of Texpreneurs of India, said that in the current dynamic and volatile business and business environment, timely intervention of policy decisions is crucial for changing needs. Removing import duties will help the entire textile manufacturing ecosystem, support the overall cotton balance sheet and also reduce speculative trade.

According to Federation of Indian Export Organizations Chairman A. Sakthivel, this will significantly boost the export of apparel and apparel sectors by softening the prices of yarn and fabrics. India has recently increased its market share in garment exports to the United States and many countries. With government support, the textile sector is expected to strive to reach $100 billion in exports by 2030.

Sanjay Garg, chairman of the North India Textile Mills Association, said the removal of import duties on cotton has been demanded for some time by the domestic textile industry and will make Indian textile products competitive.


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