Textiles Ministry Proposes Duty Cuts to Support Industry Amid West Asia Crisis
Textiles Ministry plans duty cuts to shield industry amid West Asia crisis
The Economic TimesImage: The Economic Times
The Textiles Ministry of India is proposing duty cuts and regulatory changes to ensure raw material supply amid the ongoing crisis in West Asia. Key measures include lowering import duties on rayon pulp and specific cotton varieties, as well as deferring anti-dumping duties on certain yarns, to help the industry maintain competitiveness in global markets.
- 01Proposed duty cuts aim to secure raw material supplies for the textiles industry.
- 02Import duties on rayon pulp and select cotton varieties may be lowered.
- 03The ministry is in discussions with agriculture and finance ministries regarding these changes.
- 04Rising input costs and shipping disruptions are threatening production targets.
- 05The government encourages exploring East Asian markets due to a significant drop in garment exports.
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In response to the ongoing crisis in West Asia, the Textiles Ministry of India has proposed several measures to support the domestic textiles industry. These include lowering import duties on rayon pulp and specific cotton varieties, as well as deferring anti-dumping duties on certain yarns. The ministry is currently in discussions with the agriculture and finance ministries regarding these changes, emphasizing the need to secure raw material supplies amid rising input costs and shipping disruptions. The ministry is also advocating for the removal of the minimum import price on certain knitted fabrics, as the industry struggles to meet production targets and remain competitive globally. The government previously exempted cotton imports from an 11% import duty for four months last year to mitigate the impact of steep tariffs imposed by the United States. Additionally, the government is encouraging the industry to explore markets in East Asia, following a 19% year-on-year decline in readymade garment exports in March due to the disruptions in West Asia. Earlier this month, the government granted full customs duty exemptions to 40 petrochemical products, of which 29 are utilized in the textile sector, particularly for manmade fibers.
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These proposed duty cuts could help stabilize raw material costs for manufacturers, potentially leading to lower prices for consumers and maintaining jobs in the textiles sector.
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