Cotton Association of India (CAI) has written to Prime Minister Narendra Modi to reduce the duty drawback of 5-8 per cent for export of cotton and cotton yarn. This will not only boost exports but also stabilize the cotton market and the benefit will go to India’s cotton-growing farmers and entire trade will get work. The government will earn foreign exchange if the export of cotton and cotton fiber picks up.
CAI expects to export 42 lakh cotton bales up to September 2020. So far, the association has shipped around 32 lakh bales which leave another 10 lakh bales to be shipped in the next five months from May to September. The association can easily achieve these targets if prices remain at this level.
CAI views that imports are currently not feasible because Indian prices are currently the lowest in the world while the prices across the world market at Rs 33,000-36,000 per candy. CAI had estimated import targets at 25 lakh bales of which only 12 lakh bales has happened so far.
