Reports note that the proposal includes reducing the import duty on rayon pulp and select cotton varieties and deferring anti-dumping duties on certain yarns
Aimed at shielding the industry from the impact originating from the West Asia crisis, the Ministry of Textiles has proposed duty cuts and regulatory easing to secure raw material supplies, as per the media reports.
The reports noted that the proposal includes reducing the import duty on rayon pulp and select cotton varieties and deferring anti-dumping duties on certain yarns. The reports also pointed out that talks are underway with the Ministry of Agriculture on lowering the customs duty. With farmer interest of utmost importance, the reports noted that some sections are in favour of eliminating the due to the lack of production in the country.
The ministry is also looking at removing the minimum import price (MIP) on key knitted fabrics to support the industry to meet the production targets amid rising input costs and shipping disruptions. Earlier this month, the Centre gave full customs duty exemption to 40 petrochemical products. Of these, 29 are used in the textile sector, the report added.
Earlier, aimed at strengthening farmer welfare, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved Minimum Support Price (MSP) funding of Rs 1,718.56 crore to the Cotton Corporation of India (CCI) for the cotton season 2023–24.
This funding aims to provide direct price support to cotton farmers across the country, as per the statement by CCEA. During the 2023–24 cotton season, the area under cultivation was estimated at 114.47 lakh hectare, with production pegged at 325.22 lakh bales, accounting for nearly 25 per cent of global cotton output.
Centre fixes the MSP for seed cotton (kapas) based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). The statement added that as part of its preparedness, CCI has established a procurement network across all 11 major cotton-growing states, with over 508 procurement centres operational in 152 districts.
