The Cotton Association of India (CAI), the industry’s leading organization, has urged the Minister of Commerce, Food, and Textiles, to immediately reduce the 11 percent import duty on cotton. Atul S. Ganatra, president of CAI, wrote to Goyal to demand that the government reduce the duty on cotton because domestic prices are 15% higher than those of rival countries on the international market.
This has had a significant negative influence on the competitive price at which raw materials are available in our textile sector. The textile industry is only operating at 50% of its potential as a result, and this has hurt our value-added products’ ability to compete in the global market. Currently, ginned cotton is sold for 66,750 per confection on the domestic market (356 kg). Currently, a quintal of raw cotton costs $8,309 on a weighted average throughout the APMC yards.
Contrarily, cotton is priced at 82.7 US cents per pound (or 53,850 per candy) at the Intercontinental Exchange for delivery in March. According to him, eliminating the charge will significantly contribute to price stabilization and support the textile industry’s optimal performance.
