US cotton body seeks removal of 11% import duty on short staple cotton

New Delhi: US agri trade body Cotton Council International has pushed for the removal of the 11% import duty on shorter staple cotton below the length of 32 mm.
The import duty came into effect in 2021. The US is a key supplier of this cotton to India.

CCI is a non-profit trade agricultural trade association that promotes American cotton fiber and manufactured cotton products to more than 50 countries.


“One of the issues that is a challenge to us is the import duty of about 11% which is applied to the imports of cotton coming from the US,” said Marc A Lewkowitz President and CEO, Supima.

Supima allows textile mills, manufacturers, and retailers whose products are made with Supima cotton to become licensed and gain full access to the its brand. CCI and Supima, along with others will discuss topics of mutual interest and chart a path of cooperation with Indian textile companies on Wednesday.

While the government had removed the 10% import duty on cotton with staple length above 32 mm called Extra Long Staple (ELS) cotton, the 11% levy on imported cotton below staple length of 32 mm stays.

“It has been levied since 2021 and we have been successful in having it removed from American PIMA or any imports of cotton that is 32 mm or longer. However, it is still in place for cotton coming in for the shorter staple,” Lewkowitz said, adding that this impacts the domestic textile industry.

India’s textile industry is projected to grow to $350 billion by 2025.

“As India is a key market for U.S. cotton, there issubstantial opportunity to expand our cooperation,” said Bruce Atherley, CCI Executive Director.