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Textiles

India scraps 11% import duty on extra-long staple cotton

20 Feb '24
1 min read
Pic: Adobe Stock
Pic: Adobe Stock

Insights

  • India has lifted import duties on extra-long staple (ELS) cotton, addressing demands from its textile industry.
  • The move aims to ease reliance on imported ELS cotton, subject to an 11 per cent duty, crucial for fine cotton yarn production.
  • TEXPROCIL, which has long advocated for duty removal, notified members of the decision, referring to HS Code 52010025.
India has removed the import duty on extra-long staple (ELS) cotton for the ease of the industry. The Indian textile industry had been demanding the exemption of ELS cotton from import duties due to heavy dependence on imports for this type of cotton. Currently, an 11 per cent import duty is applicable to the raw material used for fine counts of cotton yarn.

The Cotton Textile Export Promotion Council (TEXPROCIL) has informed its members about the decision made by the central government. It stated that the Government has removed the import duty on cotton covered under HS Code 52010025, which pertains to ‘Other: of staple length exceeding 32.0 mm’.

The Central Board of Indirect Taxes and Customs (CBIC) issued a notification (No. 11/2024-Customs) regarding the same yesterday.

TEXPROCIL has been continuously urging the government to remove the 11 per cent import duty on cotton, which was imposed in November 2022. The Council has welcomed this decision, stating that it will make exports of value-added products more competitive and further boost India’s exports of these products.

ALCHEMPro News Desk (KUL)
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