New Delhi: The government’s decision to temporarily exempt all customs duties on cotton imports will improve raw material availability and ease pressure on the textile and apparel value chain, the industry said on Saturday.
Welcoming the government’s move, the Apparel Export Promotion Council (Apparel Export Promotion Council) said the measure is expected to reduce input costs, improve cotton availability, and enhance the competitiveness of Indian textile and apparel exports, particularly benefiting small and medium enterprises facing volatility in cotton and yarn prices.
AEPC Chairman Dr A. Sakthivel expressed gratitude to Prime Minister Narendra Modi, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman, Union Minister of Commerce and Industry Piyush Goyal, Union Minister for Agriculture & Farmers Welfare and Rural Development Shivraj Singh Chouhan and Union Minister of Textiles Giriraj Singh for what he described as a timely intervention in support of the sector.
He also conveyed special thanks to Minister of State for Information and Broadcasting and Parliamentary Affairs Dr L. Murugan for his support and coordination in addressing industry concerns.
Dr Sakthivel said the temporary duty exemption is expected to moderate domestic cotton prices and strengthen the textile value chain.
In addition, he urged spinning mills to pass on the benefit of lower raw material costs by rationalising yarn prices, adding that this would help exporters secure and execute orders more competitively.
He further noted that AEPC had been consistently raising the issue with the government through a series of representations and meetings and said the decision reflects the government’s commitment to supporting export-oriented manufacturing and strengthening India’s position as a global sourcing destination.
Moreover, AEPC believes that this timely measure will strengthen India’s position as a reliable global sourcing destination, improve export competitiveness, and contribute significantly to the growth of textile and apparel exports from the country.
Earlier in the day, the centre announced a temporary exemption on all customs duties on the import of cotton from June 1 to October 30, to augment its availability for the Indian textile sector amid geopolitical tensions.
The temporary duty exemption is expected to reduce input costs across the textile and apparel sector, thereby providing targeted relief to manufacturers and consumers, while also keeping the interests of domestic farmers in mind, the government said.
The measure is anticipated to have a positive impact on the performance of the domestic textile industry, especially the small and medium enterprises, ensuring better availability of cotton in the market.
(IANS)
