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In A Relief To Textile Industry, Union Government Waives Customs Duty On Cotton imports Till Sep 30
- The Union Finance ministry on Wednesday waived customs duty on cotton imports till September 30, a move which will benefit the textile industry and lower prices for consumers.
- The textile industry has been seeking relief as cotton prices have soared to over ₹90,000 per candy.
A cotton field
The Union Finance ministry on Wednesday waived customs duty on cotton imports till September 30, a move which will benefit the textile industry and lower prices for consumers.
The Central Board of Indirect Taxes and Custom (CBIC) has issued a notification in this regard, to provide exemption with effect from April 14. The same will remain in force till September 30.
Currently, cotton imports attract 5 per cent Basic Customs Duty (BCD) and 5 per cent Agriculture Infrastructure Development Cess (AIDC). The industry has been demanding waiver of duty to lower domestic prices.
“The import of cotton has been fully exempted from customs duties. This exemption shall benefit the textile chain — yarn, fabric, garments and made ups — and provide relief to consumers. Textile exports will also stand to benefit,” the ministry said in a statement. The move comes at a time when retail inflation for clothing is over 8 per cent.
This exemption shall benefit the textile chain -- yarn , fabric, garments and made ups and provide relief to consumers. Textile exports would also benefit, the ministry added.
The textile industry has been seeking relief as cotton prices have soared to over ₹90,000 per candy.
The Cotton Association of India (CAI) said that it reduced its cotton crop forecast by 1.50 lakh bales in its July estimate for 2020-21, beginning October, to 354.50 lakh bales compared to the previous month, following lower output exceptions in Gujarat and Telangana.
(With inputs from PTI)
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