SIMA Demands Exemption Of Cotton From 11% Import Duty During Off Season
Updated: Oct 05, 2023 05:08:10pm
SIMA Demands Exemption Of Cotton From 11% Import Duty During Off Season
New Delhi, Oct 5 (KNN) Dr. S.K. Sundararaman, Chairman, Southern India Mills’ Association (SIMA), has appealed to the Government to exempt the cotton from 11% import duty during April to October (off-season) which was also done during the cotton seasons of 2021-22.
It would enable win-win strategy for both the cotton farmers and the industry, thereby avoiding speculation of cotton prices by the trade, he said.
The chief said that 11% import duty levied on cotton has made Indian cotton expensive by 10% to 15% as the domestic cotton traders adopt import parity pricing.
He added that the exporters have to forego RoDTEP export benefit while importing cotton under Advance Authorization Scheme, which has also curtailed the global competitiveness of the cotton textile exports.
The SIMA delegation met the Minister of Finance, Nirmala Sitharaman in Coimbatore earlier this week and submitted a memorandum seeking conversion of ECGLS short term loans offered as a COVID relief measure with a repayment period of three years to six years term loan so as to reduce the financial burden for the textile units and avoid becoming NPAs both in the interest of the textile industry and also the financial institutions.
Dr. Sundararaman said that the financial viability of the spinning mills in South India, particularly in Tamilnadu, which accounts 45% of the production capacity, is at stake under the current scenario.
He said that the spinning mills in Tamilnadu had to spend Rs. 4/- to Rs. 7/- per kg to procure the raw materials from the States like Gujarat and Maharashtra, sell over 40% of the yarn in Maharashtra and other States by spending equal amount.
He has added that the powerloom and weaving sectors in Tamilnadu are sending over two crore metres of fabric per day for processing to the States like Gujarat and Maharashtra, as Tamilnadu does not have adequate processing facilities thus increasing the cost of fabric by Rs. 2/- to Rs. 3/- per metre. (KNN Bureau)
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