The Cabinet Committee on Economic Affairs (CCEA) is likely to take up on Thursday the proposal of the Textiles Ministry to impose 10 per cent duty on shipment of surplus cotton to ensure its availability in the domestic market.
Officials said the Textiles Ministry had proposed a new Cotton Distribution Policy for putting in place a stable, transparent, production and tariff-driven cotton market to balance the interests of stakeholders in the entire value chain.
Under the new policy, the Ministry has recommended imposition of an export duty of 10 per cent ad valorem on f.o.b. (freight on board) basis or maximum of Rs.10,000 per tonne, whichever is less, for all cotton exports over and above the declared/revised exportable surplus.
The Ministry said the imposition of export duty on cotton would lead to revenue collection and also improve inclusiveness of the textile industry in the economic activity.
