Government waives off customs duty on cotton till September 30; move aimed to bring down cloth prices

Government on Wednesday waived off customs duty on cotton till September 30, 2022. The notification will come into force on April 14, 2022. As of now, the effective duty on the import of cotton is 11 percent.

The Central Board of Indirect and Customs (CBIC) has notified this exemption from customs duty and Agriculture Infrastructure Development Cess (AIDC) for cotton imports. CBIC said, "The notification will come into effect from April 14, 2022 and will be in force till September 30, 2022." The industry was demanding exemption from duty to bring down domestic prices.

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Removal of customs duty on cotton may bring down the prices of incoming cloth. This will give relief to the consumer.

This decision of the government will benefit the entire textile chain - yarn, fabric, garments, and made-ups. Along with this, textile exports will also get a boost.

"Cotton textile exports will get further boost as the high prices of cotton were blunting the competitive edge," Federation of Indian Export Organisations (FIEO) President A Sakthivel said.

He added that India has increased its market share in apparel exports in the US and many other countries recently and the signing of free trade pact with the UAE and Australia will further accelerate it.

"The government has provided all support to the textile sector and we should endeavour to reach USD 100 billion of textile exports by 2030," he added.

(With the inputs of PTI)