Know how the removal of import duty will affect the textile world
Government delays removal of cotton import duty limit in textile segment
Textile mill owners, troubled by the unbridled prices of cotton, have been demanding for a long time to free the import duty of cotton. On Wednesday this week, the government ended the wait of these industrialists and till September 2022, the import of cotton was completely duty free. As soon as this decision comes, there is an atmosphere of happiness in the entire textile world, especially among the industrialists. But according to experts, this step of the government is welcome, but the government has delayed it and the textile industry has suffered a lot by paying the duty.
Millions of bales of cotton were imported in March
In fact, according to the recent report of SIS, in March 2022, total HSN code (52010020) 20941.313 metric tonnes of raw cotton i.e. about 1 lakh 23 thousand 185 bales has been imported all over India and a huge amount has also been paid in import duty on this. Is. According to experts, this much raw cotton will meet a lot of consumption of mills for the coming few months. In such a situation, if imports will be less in the months of April and May, then by removing the import duty limit, the benefit in these two months will be negligible. Yes, mills can get the benefit of this in the months of June, July and August.
Decision taken after 4 months
Actually, since the beginning of the year 2022, cotton prices have been on fire. In the month of January, where the rate of cotton was Rs 9,050, at present the price of cotton has reached 11 to 12 thousand. Buying cotton at such an expensive price and making yarn and cloth was no less than a challenge for the mills. This was the reason why many mills had decided to work only half days a week. To avoid this problem, the mill owners were continuously demanding the government to remove the import duty of cotton since January. But the government took a decision on this in the second week of April.
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