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Govt asks Indian textile industry to use local cotton

Aug 12, 2021
Govt asks Indian textile industry to use local cotton

The government has asked the textile and apparel industry to make use of the excessive local cotton in order to support the farmers who have been hit by a surge in imports. 

According to Pankaj Chaudhary, Minister of State, in order to benefit the domestic farmers of cotton, 5% basic customs duty, 5% agriculture infrastructure and development cess were imposed on raw cotton in the budget of the financial year 2022. He also said that even though India is the largest producer of cotton in the world, the import of cotton has surged significantly in the last few years.

He added that all the varieties of cotton even the ones that are largely produced in the country are also imported. This has affected the farmers of cotton in the country a great deal. Cotton is available in the country in excess of its demand, so the garment industry should use this domestically produced cotton which includes both extra-long-staple cotton and high-quality cotton, he added. He feels that if the dependence on the import of cotton is reduced, the domestic garment industry can take advantage of the same.

He also acknowledged the fact that trade associations have made representations that due to the import duty, the textile and apparel industry had to face a lot of difficulties.

Source – Livemint

Image Source: Wikipedia

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