The cotton production and consumption committee (COCPC), headed by the Textile Commissioner of the Union, has recommended the center to eliminate the import tax of 11 percent on cotton.
The COCPC, which includes all those interested in the cotton industry, made the recommendation at its meeting held in Mumbai on Wednesday, said K Venkatachalam, chief advisor of the Spinning (Tasma) Muebility Association of Tamilnadu. It was part of the interested party meeting.
“If the center cannot eliminate 11 percent duty, then the COCPC recruited that it could freeze customs duty during the coming months,” he told Business line.
Textile factories that import cotton must be alert on the development scenario, thinking that any change in the import tax structure will have to be notified by the Ministry of Finance, he said.
Positive signal for us
Venkatachalam said the measure will send a positive signal to the Trump administration in the United States that India has fulfilled the import duty in Cotton Zero. “This will probably reflect positive on Indian textile exports to the United States,” he said.
This development follows the estimation of Indian cotton production under 300 Lakh Fardos (170 kg) by Cocpc and industry bodies such as the Indian cotton association (CAI). The conformity with the last estimate of the CAI, the cotton production this season, as of September, will probably be 291.30 Lakh Fardos. The association has also projected imports to more than double 33 Lakh bundles of 15.20 Lakh Fardos last season.
The cotton supply this year, including 25 Imported Lakh bundles as of March 31, is estimated at 306.83 Lakh bundles, compared to the estimated consumption of 315 bales Lakh.
The Indian textile sector has begun important cotton in recent years, since the production of natural fiber has stagnated due to its lower performance. India cotton production increased to almost 400 Lakh bundles in early 2010 after the introduction of genetically modified BT cotton. But, a new BT variety has not been introduced since 2006, and pest attacks such as the pink worm and whitefly, in addition to climate change, have begun to affect productivity.
Posted on April 16, 2025