“The duty exemption on cotton import is just not enough, traders and stakeholders demands for other measures”
The cotton fraternity welcomes the decision of the government of removal of duty on cotton import, but it should have come earlier ,says the stakeholders.
Sumit Jain, MD of a Delhi based Textile Company asserts that had the decision came 6-7 months earlier we wouldn’t have cancelled several orders due to the steep price hikes. Many business commitments couldn’t get fulfilled as the surging in prices every fortnight derailed the original manufacturing plans and their timeline.
Several factors contribute to the spike in rates including the rise in demand but lack of supply and excessive rainfall in some major cotton growing areas. Also, the irregularity in the supply chain and logistics has disrupted the global trade affair.
Firms like MSME are really facing a tough time with their production from past 8-10 months. The traders and exporters are now looking for some more perks to stabilize the industry. Firstly, government should take a firm stand to control the export of raw cotton, in order to add value to cotton products. The Home Textile Welfare Association (HEWA) urges the government to put serious checks on the uncontrolled export of raw materials to competitive countries like China and Bangladesh..
