Led by Roop Rashi, Union Textile Commissioner, the Committee on Cotton Production and Consumption (COCPC) has urged the Central Government to eliminate the 11 per cent import duty on cotton.
K Venkatachalam, Chief Advisor, Tamil Nadu Spinning Mills Association (TASMA), reveals, COCPC made this recommendation at a meeting held in Mumbai.
COCPC further recommended, if the government couldn't fully remove the 11 per cent duty, it should freeze the customs duty for the next few months, Venkatchalam adds.
According to him, this action would send a positive message to the US administration and positively impact India's textile exports to the US
This development follows the COCPC and industry bodies like the Cotton Association of India (CAI) estimating Indian cotton production to be lower than 30 million bales (of 170 kg each). The CAI's latest estimate projects a cotton output of 29.13 million bales for the current season, ending in September. The association also forecasts that imports will more than double to 3.3 million bales, up from 1.52 million bales last season.
This year, total cotton supply this year, including the 2.5 million bales imported as of March 31, is estimated at 30.683 million bales, compared to the estimated consumption of 31.5 million bales.
The Indian textile sector has started importing cotton in recent years as the natural fiber's production has stagnated due to lower yields. India's cotton production increased to nearly 40 million bales in the early 2010s after the introduction of genetically modified Bt cotton. However, no new Bt variety has been introduced since 2006, and pest infestations like pink bollworm and whitefly, along with climate change, have begun to affect productivity.