Govt extends deadline for import of duty-free cotton till October 31

New Delhi, July 6 (KNN) The central government has extended the deadline to import duty-free raw cotton until October 31 from the earlier deadline of September 30, 2022.

It will allow the textile and yarn industries to source cheaper cotton for the extended one month. This decision comes in the amidst of delayed monsoon in some of the cotton growing regions.

The import duty was levied at the rate of 11 per cent in February 2021, when the fibre prices lingered around Rs 44,500 per candy (of 356 kg each).But in April this year, the government had allowed duty-free imports after the domestic prices  sky rocketed, recording Rs 1 lakh per candy ginned cotton on lower crop projections.

The prices, however, have softened by about 10 per cent in the recent weeks, tracking global sentiment.

Notably, the industry had been demanding duty-free import of cotton until December 31 amidst spiralling domestic prices. But the government seems to have also considered the interests of the growers, who would harvest the crop by end of October or early November.

An extension till December would have hampered the domestic prices and hurt the cotton farmers. But a relaxation till October will help in protecting the interests of both the farmers and industries.  (KNN Bureau)