SIMA seeks duty-free import of cotton
Urges Centre to allow importing 40 lakh bales; With predicted shortage of cotton in India, the request for duty-free import of medium-level staple cotton to avoid job losses, says Southern India Mills Association; It also appealed PM for intervention in cotton policies
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Coimbatore: With anticipated shortage of cotton in India, Southern India Mills Association (SIMA) on Monday requested the Centre to allow 40 lakh bales duty free import of medium-level staple cotton to avoid job losses and appealed to Prime Minister Narendra Modi for his intervention in cotton policies.
The country has been so far producing surplus cotton and exporting to different countries, including Bangladesh. During the current season, owing to substantial increase in demand and export of around 50 lakh bales, the country is likely to face 30 to 40 lakh bales cotton shortage, SIMA Chairman Ravi Sam told reporters here.
The unprecedented increase in domestic cotton price from the level of Rs 135 per kg (Feb 2021) to Rs 219 per kg (Feb 2022) in one year, an increase of around 65 per cent is greatly affecting the exporters to meet their export commitments. The levy of 11 per cent import duty has aggravated the cotton market in India, he said.
As the seed cotton price (kapas) is ruling around 70 per cent higher than the Minimum Support Price, the farmers, ginners and traders are hoarding cotton hoping for further increase in prices.
The arrival of fresh cotton has drastically reduced to around 2.20 crore bales during February as against around 2.93 crore bales during the same period last year.
