Exempt cotton from import duty, SIMA urges FM Sitharaman

COIMBATORE: The Southern India Mills Association (SIMA) has appealed to Union Finance Minister Nirmala Sitharaman to exempt cotton from 11 per cent import duty during the off-season to tide over the shortage crisis.

“The import duty should be exempted during the off-season from April to October as was done last year to ensure raw material security and avoid mass production stoppage and depletion in exports.

Cotton textile exports have dropped over 23 per cent compared to the previous year thus requiring cotton to be made available to the manufacturing sector at an internationally competitive price,” said Ravi Sam, chairman of SIMA, in a statement on Tuesday.

Ravi Sam said the industry requires around 320 to 330 lakh bales of cotton as against the country’s production of 310 to 320 lakh bales, out of which only around 80 per cent is of good quality and the remaining could not be used for producing high-quality textile products.

As up to 40 lakh bales are normally exported, the industry would face an acute shortage of cotton, if the import duty is not removed immediately.

“With the 11 per cent import duty, the Indian cotton is expensive by 15 per cent and thus is losing out on several export orders. Adequate availability of quality cotton at an internationally competitive and stable price is essential for the industry to recover from the current sluggishness and achieve sustained growth,” he said.