MSMEs in relief; Hail govt's decision to do away with custom duty on cotton till Sept 30

New Delhi, April 14 (KNN) The Micro, Small, and Medium Enterprises (MSMEs) that make up for the major part of the textile sector has welcomed the government’s decision to remove custom duty on cotton till September 30 bringing much-awaited relief to the sector battered due to rising cotton prices.

As per the Central Board of Indirect Taxes and Customs (CBIC) notification, the exemption of customs duty and agriculture infrastructure development cess on cotton imports will come to effect from today till September 30.

Speaking exclusively with KNN India, Animesh Saxena, MD of Neetee Clothings Pvt Ltd based in Gurugram said, “The government has taken a much-needed step and we welcome it. The genuine demand of the Textile and Apparel Industry has finally been accepted by the government which will definitely bring some price correction in the market and bring relief to the industry.”

Thanking Prime Minister Narendra Modi and Textile Minister Piyush Goyal, Raja Shanmugham, President, Tiruppur Exporters Association (TEA) told KNN India that with this announcement the government has finally decided to handhold the interest of the farmers and garment manufacturers equally.

“The government did not allow derivative trade practices to be continued by the traders at the cost of the farmers, industries and economy of the country,” added Shanmugham.

Moving forward, he opined that the industries can now be more confidant to take orders as new opportunities are coming out of China+ factor and Sri Lankan crisis factor.

After several appeals from industry leaders and MSME associations to remove 10 per cent import duty on cotton, it was reported in January that the Ministry of Textiles had taken up the matter with the Finance Ministry.

Last week the cotton prices had increased to more than Rs 90,000 a candy and the manufacturers of basic garments increased the prices by 15 per cent in December. (KNN/KT)