Remove import duty on staple cotton, stresses SIMA
17 Feb '06
1 min read
K Selvaraju, Secretary, Southern India Mills' Association (SIMA), opined that the import duty on extra long staple cotton should be eliminated.
Low cost of production is an important issue for traders for surviving in the international market.
Selvaraju said that for producers to grow globally, cotton offered to them should be atleast priced on par with their competitor countries.
He noted that the sharp hike in the staple cotton prices in December 2005 adversely affected the demand for fine and superfine count yarns with termination of Egyptian contracts.
While the extra long staple cotton output in the country is around 5.3 lakh bales or 170 kilo grams, the demand exceeds by eight lakh bales.
Textile companies are importing cotton from countries like the US and Egypt which requires them to pay 10 percent customs duty.
Selvaraju called on to the Confederation of Indian Textile Industry (CITI) to approach the Centre regarding this issue.
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