Question : Removal of Import Duty on Cotton

(a) whether the Ministry has taken up with the Ministry of Finance the need for removal of 10% import duty on cotton to improve the textiles and clothing sector; if so, the details thereof;

(b) whether the Ministry has also discussed rising raw cotton and yarn prices alongwith other issues plaguing the textile sector/workers; and

(c) the details of the measures proposed to deal with aforesaid issues and the present status thereof?

Answer given by the minister


THE MINISTER OF STATE FOR TEXTILES
(SMT. DARSHANA JARDOSH)

(a): Ministry has taken up the matter with the Department of Revenue, Ministry of Finance regarding removal of 10% import duty on cotton.

(b) & (c): Ministry is constantly engaging with various stakeholders across the entire value chain in respect of the prices of cotton and cotton yarn to harmonize their interest. The primary reason for increase in prices of cotton yarn can be attributed to increase in prices of raw cotton, both in domestic and International market. The prices are affected by market forces of demand and supply. At present, the cotton yarn prices in India are aligned to the International prices.
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