Analysis
Customs
1 min read
Textile Exporters Request Government to Waive Cotton Import Duty
Full Story
Textile exporters are requesting the government to remove the 11% import duty on cotton due to rising domestic cotton prices.
Background
Domestic cotton prices have increased by 7-8% in the last month, driven by higher demand as crude oil prices increase synthetic fiber costs, causing mills to shift back to cotton. This impacts export competitiveness.
Key Analysis
Margin erosion
Increased cotton prices and import duties reduce exporter profit margins.
Competitiveness decline
Indian exporters struggle against countries with duty-free access.
Raw material costs surge
Crude oil price increases have led to a 10-60% rise in raw material costs.
Bottom Line
Waiving the import duty could alleviate pressure on exporters and stabilize the textile industry.
Watch For
Monitor government response to the appeal and potential duty waivers.
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