US Cotton Industry Seeks Removal of 11% Import Duty on Short Staple Cotton
By 2024-06-19 12:20:24
US Cotton Industry Wants 11% Import Tax on Short Staple Cotton Removed
Cotton Council International (CCI) urged the Indian government on Tuesday to remove the 11% import duty on short staple cotton to lower prices and benefit the Indian textile industry.
In February, India had removed the 10% import duty on cotton with a staple length above 32 millimeters (mm), known as Extra Long Staple (ELS) cotton. However, the 11% import duty on cotton with a staple length below 32 mm remains.
The import duty, imposed on February 1, 2021, includes a 5% basic customs duty, a 5% tax, and a 1% social welfare charge.
"We are here to discuss challenges with our partners and seek solutions. The 11% import duty on US cotton imports, particularly shorter staple cotton, has negatively impacted the domestic textile industry," said Marc A Lewkowitz, President and CEO of SUPIMA, at a roundtable organized by CCI.
Lewkowitz emphasized that India, despite its large cotton textile industry, cannot produce enough cotton to meet its domestic needs. ELS cotton production in India accounts for less than 1% of total cotton production, necessitating imports to support textile mills manufacturing yarns, apparel, and home textiles.
The United States, Egypt, and Israel are major suppliers of ELS cotton to India.
