Basic customs duty on cotton unchanged in Gujarat
To boost demand and exports, the industry actively batted for abolishing import duty on cotton to help rationalize prices
With no change in the 10% basic customs duty (BCD) on cotton import, customers will get no respite from the rising prices of apparel and textiles.
Thanks to a higher degree of volatility in Indian cotton prices, which touched an all-time high last year, apparel prices have increased by 15-20% in the past year or so, say industry players.
To boost demand and exports, the industry actively batted for abolishing import duty on cotton to help rationalize prices.
The industry will struggle to boost the demand with a higher cost of production amidst no respite in prices," said Rahul Mehta, chief mentor of the Clothing Manufacturers' Association of India (CMAI).
With a basic customs duty of 8.25% imposed on high-speed weaving machines (HSWM), weavers expressed concern over the rise in the cost of production.
Textile industry players, however, are happy with the schemes to enhance the productivity of extra-long staple cotton through public-private partnerships.
Boosting disposable income through a change in the income-tax slab will also aid demand in the textile sector by increasing discretionary spending, said industry players.