Cotton Imports

India's cotton import-duty waiver may lower raw material costs for textile exporters, but uncertainty over proposed US tariffs could limit gains and weigh on competitiveness in a key market

Industry bodies said the temporary removal of cotton import duty will reduce input costs, improve competitiveness and support export growth across the textile value chain

The Centre has exempted cotton imports from customs duty and AIDC till October 31, aiming to improve domestic availability and lower raw material costs for textile manufacturers

The government is in an "advanced stage of consultation" regarding the 11 per cent customs duty on imports of raw cotton, and examining if the levy can be removed, with a decision expected soon, a senior official said. Ministries, including finance, textiles, and agriculture, are deliberating on the duty, with the textile industry seeking its removal to mitigate cost pressures on domestic companies due to high prices. "We are talking to Finance and Agriculture (ministries), both, and it is in an advanced stage of consultation. We hope that the consultation will be finalised in the near future," the official told PTI. A delegation comprising apparel industry representatives and exporters met Vice President C P Radhakrishnan and several Union ministers recently and sought the removal of the duty. The delegation argued that the textile industry's cotton requirement for the current year is projected at around 337 lakh bales, whereas cotton arrivals for the 2025-26 season are estimated

Government may temporarily scrap cotton import duty from July to October as textile mills seek relief amid soaring prices and supply concerns

As industry seeks lower cotton import duty amid rising prices, sections of trade warn it could hurt farmers, trigger distress selling, and lead to losses for the Cotton Corporation of India

Greaves.Next. Parag Satpute, managing director and group chief executive officer of Greaves Cotton, discusses the road map and the company's focus areas

Higher imports by the world's second-largest cotton producer are expected to support global prices, which are trading near six-month lows

India has raised the price at which it will buy new-season cotton from domestic farmers by 7.8% to 8,110 rupees per 100 kg, but local market prices are hovering around 7,000 rupees

Tamil Nadu urges higher export incentives and faster EU trade deal as duty-free cotton imports extended till Dec 31, while farmers complain of falling domestic cotton prices due to cheap US supplies

The Finance Ministry has extended duty exemption on cotton till December 2025 to ease raw material supply, support garment exporters and cushion the impact of US tariffs on RMG

The world's second-biggest cotton producer had earlier announced an exemption on cotton imports from an 11 per cent duty until September-end and has now extended that to December 31

Higher imports by world's second-largest producer of the fibre could support global prices, which fell to their lowest in more than 4 years after top consumer China levied duties on imports from US

The US industry body Cotton Council International on Tuesday asked the government to remove 11 per cent import duty on short staple cotton, in a bid to bring down its prices for the benefit of the Indian textile industry. In February, the government had removed the import duty of 10 per cent for cotton with a staple length above 32 millimeters (mm), also known as Extra Long Staple (ELS) cotton. However, the import duty of 11 per cent on imported cotton below staple length of 32 mm remains in effect. On February 1, 2021, the government announced an 11 per cent duty on imported cotton, effective February 2, 2021. The duty comprised of five per cent basic customs duty, five per cent tax, and one per cent social welfare charge. "As US Cotton industry we are here to have a conversation with our partners and to get a better understanding of the challenges and how we can help facilitate a positive change. One of the issues that is a challenge to us is the import duty of about 11 per cent

The duty cut made refined palm oil imports lucrative for Indian refiners, which traditionally prefer to import crude palm oil

There is a shortage of demand for textile goods globally due to the Ukraine-Russia war

Pakistan's Finance Minister Miftah Ismail on Wednesday said that the country's textile sector had demanded lifting of a ban on the import of cotton from India, but the government has so far not taken any decision on the issue. Addressing a press conference along with Defence Minister Khawaja Asif here, Ismail talked about the damage caused to the cotton crop due to devastating floods that have affected more than 33 million people, inundated a third of the country and caused losses of more than USD 10 billion. Replying to a question with respect to trade with India, the minister said that the All Pakistan Textile Mills Association (APTMA) was asking the federal government to allow import of cotton from India. "The government has not taken any decision yet," he said, without elaborating when such a decision could be taken. Pakistan suspended trade with India after the latter revoked the special status of Jammu and Kashmir in August 2019. But the ban is hurting the crisis-hit country

This confluence of extreme weather events brought on by climate change has sent cotton prices soaring by as much as 30%

The finance ministry has extended the exemption of customs duty on raw cotton imports by a month till October 31. On April 14, the ministry had given exemption from the duty and Agriculture Infrastructure Development Cess (AIDC) till September 30, 2022, for import of cotton to lower prices in the domestic market. In a notification dated July 4, the ministry extended this till October 31, 2022. Amid rise in cotton and yarn prices, the textiles ministry had been pitching for an extension of the duty waiver beyond September. Industry too had been demanding extension of the duty-free import of cotton. Before April 14, raw cotton imports attracted 5 per cent Basic Customs Duty (BCD) and an equal percentage of AIDC. The exemption from duty would benefit the textile chain -- yarn, fabric, garments and made-ups -- and provide relief to consumers. Cotton prices have increased from Rs 44,500 per candy in February, 2021, to Rs 90,000 per candy in March 2022. Each candy weights 356 kilogram.

Group representing farmers protests government dropping customs duty on imports, calls it disastrous