The textile industry associations have expressed their approval of a recommendation made by the office of the textile commissioner to the Union ministry of textiles. The proposal suggests that the 11% duty on cotton imports should be removed annually from April to September for the next five years.
Level Playing Field and Job Protection
Industry bodies stated that this move would create a level playing field and help mitigate the cotton shortage, which has been adversely affecting the 35 million people directly employed across the cotton value chain. The shortage has led to increased costs and supply constraints, impacting the livelihoods of millions.
Decision-Making Process
A senior ministry official, who engaged with industry representatives during a meeting in Coimbatore on Thursday, confirmed that the decision was reached at a recent meeting of the Committee on Cotton Production and Consumption held in Mumbai. The panel decided to recommend the suspension of the import duty after receiving representations from the consuming industry. The proposal is now under consideration by the ministry of textiles.
Hank Yarn Obligation Reduction
Regarding the industry's demand for reducing the hank yarn obligation, the official indicated that an order might be issued by the end of this quarter or early next quarter, which would reduce the obligation for textile mills. This change is expected to provide relief to mills and improve operational flexibility.
Upcoming Schemes to Boost Investments
The official also mentioned that the Textile Expansion and Employment Scheme and the Tex Eco schemes, which are designed to spur investments in the sector, are likely to be implemented from August to September. These initiatives aim to enhance production capacity, promote sustainable practices, and generate employment opportunities within the textile industry.
