Industry urges centre to remove 11% import duty on cotton
The consequence of this situation is an 18 per cent decline in total exports of textiles and clothing, a 50 per cent decline in yarn exports, and a 23 per cent decline in cotton textiles exports compared to the previous year.
The Confederation of Indian Textile Industry (CITI) and the Southern India Mills’ Association (SIMA) have requested the Centre to eliminate the 11 per cent import duty imposed on cotton, resolve Quality Control Order (QCO) concerns, and ensure the availability of raw materials at international prices.
Furthermore, they have urged the state government to limit the maximum charges for electricity demand to either 20 per cent or the recorded demand, whichever is higher, for high tension (HT) textile industrial units.
During a media briefing, T Rajkumar, the chairman of CITI, and Ravi Sam, the chairman of SIMA, stated that the Indian textiles and clothing industry, which provides employment to more than 110 million people, generating $ 44 billion in foreign exchange earnings and over Rs 25,000 crore in GST revenue, is currently facing unparalleled financial strain.
They mentioned, “The consequence of this situation is an 18 per cent decline in total exports of textiles and clothing, a 50 per cent decline in yarn exports, and a 23 per cent decline in cotton textiles exports compared to the previous year. The spinning sector has suffered significant erosion of its working capital due to the high volatility in cotton prices and trade speculation. Cotton prices have plummeted from Rs 63,000 per 356 kg of cotton bale in April to Rs 56,000 per bale in July. With the current cotton prices, mills are experiencing losses ranging from Rs 10-20 per kilogram of yarn.”
Additional demands include the postponement of fixed charges and exemption from peak hour charges for low tension (LT) III-B units.