Textile association opposes plan to levy import duty on cotton

The Indian Texpreneurs Federation has opposed a proposal by the Maharashtra Government to levy import duty on cotton.

According to Prabhu Dhamodharan, convenor of the Federation, such proposals are “anti-industry and can change the entire dynamics of the textile value chain.”

A “knee jerk reaction” of the government in 2010-2011 eroded nearly ₹15,000 crore from the system and the spinning mills are yet to recover from it.

The industry needs long term and stable policies to be competitive in the international market, he said. Indian textile industry should make value added products to capture the global market and to tap the opportunities arising because of the US-China trade war.

Therefore, the Union Textile Ministry should intervene and ensure there is no such duty on cotton imports. The Ministry should ensure stability in policy. There should be zero duty on cotton imports and exports. The Indian textile manufacturing sector always supported the policy of zero trade restrictions on raw material, he said.

Industry sources here said there cannot be a levy on cotton imports. Most of the mills that are operating now are using imported cotton. Further, it is learnt that the Union Textile Minister has assured that there will be no such levy on cotton imports and the policy of the Central Government will be uniform across the country.