Basic customs duty on cotton unchanged in Gujarat

February 04, 2023

Category: FIBRES

Country: India

Region: South Asia

TNN / Updated: Feb 2, 2023, 05:49 IST

To boost demand and exports, the industry actively batted for abolishing import duty on cotton to help rationalize prices.

With no change in the 10% basic customs duty (BCD) on cotton import, customers will get no respite from the rising prices of apparel and textiles.

Thanks to a higher degree of volatility in Indian cotton prices, which touched an all-time high last year, apparel prices have increased by 15-20% in the past year or so, say industry players.

"Cotton prices are still volatile, though it has fallen below average the past fortnight. A moderate 15-20% increase in apparel price has impacted demand across value-based and high-priced brands. The industry will struggle to boost the demand with a higher cost of production amidst no respite in prices," said Rahul Mehta, chief mentor of the Clothing Manufacturers' Association of India (CMAI).

With a basic customs duty of 8.25% imposed on high-speed weaving machines (HSWM), weavers expressed concern over the rise in the cost of production.

"India is import-dependent when it comes to procuring HSWMs, and the duty will only hamper the growth of weavers," said Ashish Gujarati, former president of the Southern Gujarat Chamber of Commerce and Industry (SGCCI).

Textile industry players, however, are happy with the schemes to enhance the productivity of extra-long staple cotton through public-private partnerships.

"This will help improve the production of Indian cotton and enable the industry to make indigenous, high-quality textiles and command better realizations," said T Rajkumar, chairman of the Confederation of Indian Textile Industry (CITI).

Boosting disposable income through a change in the income-tax slab will also aid demand in the textile sector by increasing discretionary spending, said industry players.

Courtesy: https://timesofindia.indiatimes.com/city/ahmedabad/basic-customs-duty-on-cotton-unchanged-in-gujarat/articleshow/97538066.cms