The Finance Ministry on Wednesday announced that the import of cotton will fully be exempted from custom duty. The Central Board of Indirect Taxes and Custom (CBIC) has issued a notification in this regard, to provide exemption with effect from April 14. The same will remain in force till September 30.
“The import of cotton has been fully exempted from customs duties. This exemption shall benefit the textile chain — yarn, fabric, garments and made ups — and provide relief to consumers. Textile exports will also stand to benefit,” the ministry said. The move comes at a time when retail inflation for clothing is over 8 per cent.
The textile industry has been seeking it since cotton prices have skyrocketed over ₹90,000 per candy. Mills have slowed production as a result. Crop is estimated lower than initial estimates. Currently, cotton prices are in the range of ₹92,000 to 92,500 per candy.