India Withdraws 11% Import Duty On Extra Long Staple Cotton

The Indian Commerce Ministry through a notification has removed import duty on imports of extra long staple (ELS) cotton, which has length exceeding 32mm.

The government has however retained import duty of 11 percent on short staple cotton.

Various textile mills associations were lobbying since a long time for removal of the duty on cotton imports and were expecting its removal in the recently announced interim Union Budget.

Chairman of Southern India Mills Association (SIMA) SK Sundararaman had earlier in October said that the country produces around 5 lakh bales of ELS cotton as against the requirement of 20 lakh bales.

A SIMA delegation had also appealed to the Union Finance Minister Nirmala Sitharaman for exemption of import duty on ELS cotton.

The 11 percent import duty on ELS cotton had made Indian fine count cotton yarns uncompetitive in the global markets.