Cotton prices may go down following govt measures
Prices of domestic cotton are expected to decline following the abolition of customs duty on import of cotton and drawback benefits on exports of raw cotton, a top government official said.
By PTI |
MUMBAI: Prices of domestic cotton are expected to decline following the abolition of customs duty on import of cotton and drawback benefits on exports of raw cotton, a top government official said.
Cotton prices had gone up by 40 to 60 per cent in the last few months. Nearly 3,000 yarn mills had threatened to go on a strike today pressing for their demand to abolish customs duty on cotton imports and regulation of exports.
"We feel prices of domestic cotton will go down to the extent that our textile exports will become much more competitive globally," Ministry of Textiles, Joint Secretary, J N Singh, told reporters after inaugurating 49th National Garment Fair 08 here today.
Cotton imports attracted a 10 per cent basic customs duty and 4 per cent special additional duty.
"Customs duty on all types of cotton imports has been abolished along with special additional duty. Besides, drawback benefits (refund of local taxes) on exports of raw cotton have also been withdrawn and this will boost supplies to local textile mills and cool prices," Singh said.
The reduction of import duty and some form of restriction on exports will definitely calm down prices of cotton, which was shooting up beyond reason, Clothing Manufacturers Association of India (CMAI)'s President, Rahul Mehta said.
Cotton prices had gone up by 40 to 60 per cent in the last few months. Nearly 3,000 yarn mills had threatened to go on a strike today pressing for their demand to abolish customs duty on cotton imports and regulation of exports.
"We feel prices of domestic cotton will go down to the extent that our textile exports will become much more competitive globally," Ministry of Textiles, Joint Secretary, J N Singh, told reporters after inaugurating 49th National Garment Fair 08 here today.
Cotton imports attracted a 10 per cent basic customs duty and 4 per cent special additional duty.
"Customs duty on all types of cotton imports has been abolished along with special additional duty. Besides, drawback benefits (refund of local taxes) on exports of raw cotton have also been withdrawn and this will boost supplies to local textile mills and cool prices," Singh said.
The reduction of import duty and some form of restriction on exports will definitely calm down prices of cotton, which was shooting up beyond reason, Clothing Manufacturers Association of India (CMAI)'s President, Rahul Mehta said.
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