Two demands of GST fulfilled, relief expected: Cotton Association
2025-09-05 16:46:14
Two out of three GST demands met, more relief expected: Cotton Association of India.
Atul Ganatra, President of the Cotton Association of India, welcomed the goods and services tax (GST) cut and said it addressed long-standing industry concerns. “It was a long-standing demand pending from the industry, and it has been fulfilled,” he said.
He explained that out of the three key demands made by the association, two have already been met. “Import duty to be removed - that has been done. Cotton Corporation of India (CCI), in the last 15 days, has cut 5% rate, almost ₹2,500 per candy. So out of the three demands, two have been fulfilled,” he said.
Ganatra added that export incentives for yarn and cloth to the US remain pending. He said, “We feel that within another two weeks of time, we will have further relief from the government. We feel that an incentive will be given, and also CCI may reduce the further rate of cotton.”
Dinesh Nolkha, Chairman and MD of Nitin Spinners, said the GST changes will help resolve the inverted duty structure that had created pressure for man-made fibre producers. “With this change, they can pass on the duty immediately, and their working capital flows are improved a bit,” he said, though he added there is no change in industry margins.
Both industry leaders agreed that tariffs on exports to the US continue to hurt demand. Ganatra said, “Export to the USA has come down, and we may see coming months also the figures will come down, because I have heard that USA buyers are asking big discount, 30-35% which is not possible for an Indian exporter to give.”
