AEPC Calls for Removal of 11% Import Duty on Cotton to Boost Textile Industry
AEPC urges government to scrap 11% import duty on cotton imports
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The Apparel Export Promotion Council (AEPC) has urged the Indian government to eliminate the 11% import duty on cotton, citing rising input costs that hinder the textile industry. The AEPC argues that reducing this duty is crucial for enhancing competitiveness and securing export opportunities amid increasing pressures from competing nations.
- 01AEPC is advocating for the removal of the 11% import duty on cotton.
- 02High input costs are negatively impacting the textile and apparel industry.
- 03The industry faces a supply-demand gap of nearly 45 lakh bales of cotton.
- 04Competing nations have better access to competitively priced raw materials.
- 05Reducing the duty could enhance export growth and employment in the textile sector.
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The Apparel Export Promotion Council (AEPC) has urged the Indian government to eliminate the 11% import duty on cotton, which is significantly affecting the textile industry due to rising input costs. AEPC Chairman A Sakthivel, along with a delegation, met with key ministers, including Piyush Goyal (Commerce and Industry Minister) and Shivraj Singh Chouhan (Agriculture Minister), presenting their case for the duty reduction. They emphasized that competing nations can access cotton at lower prices, putting Indian manufacturers at a disadvantage. The AEPC highlighted that India's textile industry requires approximately 337 lakh bales of cotton this year, while only about 292.15 lakh bales are expected to arrive in the 2025-26 season, creating a supply-demand gap of nearly 45 lakh bales. This shortfall could lead to increased pressure on spinning mills and downstream industries, as they struggle with high input costs and limited quality raw materials. The council believes that reducing the import duty is essential for improving competitiveness, securing business opportunities from Free Trade Agreement (FTA) partners, and supporting growth in exports and employment within the textile sector.
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Removing the import duty could lower raw material costs for Indian textile manufacturers, potentially leading to lower prices for consumers and increased job opportunities in the sector.
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