Hike in import duty on raw cotton in offing

the government said on wednesday that it is considering an increase in import duty on raw cotton to counter import surge fears in view of decline in the prices in international market. we are considering an increase in import duty on raw cotton which is currently pegged at five per cent, textiles minister kashiram rana said. while declining to divulge the proposed duty, rana said the issue is being discussed with the finance ministry and a decision is expected to be taken before the presentation of union budget. rana said government would consider the view of both the cotton growers and the domestic units before taking a decision. while the cotton growers are demanding a duty increase of 25 per cent, we have to consider the increase in cost for the fabric manufacturers, he said. the minister pointed out that despite the huge fall in international prices of raw cotton from 52 cents per pound to 35 cents per pound, imports had not increased. imports last year was around 16 lakh bales and in 1999- 2000 it was 22 lakh bales. however, imports have not even touched one lakh bales so far, he said. domestic production is, however, expected to increase from 140 lakh bales in 2000-01 to around 155-160 lakh bales this fiscal, he added. on the controversy over procurement of cotton in maharashtra, rana said the centre had conveyed to the state government to amend its rules pertaining to monopoly procurement and approach the centre formally for making additional funds. alternatively state government wanted centre to intervene by making procurement through cotton corporation of india at central support price and said it would pay the differential with the state price. the state government had also proposed to pay its farmers up to 90 per cent of the central minimum support price while clearing the remainder amount in two separate instalments later. a delegation of the state cotton farmers led by sharad joshi has met the prime minister atal bihari vajpayee on the issue last month, he said, adding the centre's decision had been conveyed to them. maharashtra has been paying higher price to its farmers under the monopoly procurement scheme. while the central msp was between rs 1600 to rs 1800 per quintal, the state government was giving between rs 2200 to 2300 per quintal. asked about the textile ministry's views on bt cotton, rana pointed out that his personal opinion was that the cotton was good on account of its benefits of a 1.5 time increased yield, 50 per cent less usage of pesticides. moreover, bt cotton is used widely in other countries accounting for 75 per cent of us cotton, 40 per cent of china and 20 per cent of south africa, he added.

Hike in import duty on raw cotton in offing

THE GOVERNMENT said on Wednesday that it is considering an increase in import duty on raw cotton to counter import surge fears in view of decline in the prices in international market.

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