The government’s decision to waive customs duty on cotton imports will help boost exports of value added products of textiles, Federation of Indian Export Organisations (FIEO) President A Sakthivel said. The move, he said, will promote exports of apparel and made-ups sectors significantly by softening the prices of yarn and fabrics as well. The Finance Ministry waived customs duty on cotton imports till September 30, a move which will benefit the textile industry and lower prices for consumers. Currently, cotton imports attract 5 percent Basic Customs Duty (BCD) and 5 percent Agriculture Infrastructure Development Cess (AIDC). The industry had been demanding a duty waiver to lower domestic prices. The Central Board of Indirect Taxes and Customs (CBIC) notified the exemption from customs duty and AIDC for import of cotton.
“Cotton textile exports will get further boost as the high prices of cotton were blunting the competitive edge,” Sakthivel said. He added that India has increased its market share in apparel exports in the US and many other countries recently and the signing of free trade pact with the UAE and Australia will further accelerate it.
