Cotton Import Duty Extended as Mills Face Supply Shortages
What happened
The Southern India Mills’ Association welcomed the Centre’s decision to extend the exemption on the 11% import duty on cotton until December 31. SIMA noted that the industry faces raw material shortages, projecting a potential shortage of around 100 lakh bales. This shortage is against an industry requirement of around 360 lakh bales, given current output estimates of 280 lakh bales for 2026-27.
From indiatimes.com
Why it matters
The cotton-based textile industry employs more than 45 million people. SIMA stated that achieving the ministry of textiles' goal of increasing exports to $100 billion requires 475–500 lakh bales of cotton at internationally competitive prices.
Openend spinning mills in Tamil Nadu are facing challenges regarding production sustainability, policy control over waste cotton exports, and price absorption in the home textile sector.
From indiatimes.com
Who's involved
- Cotton Corporation of IndiaCentral Public Sector Undertaking involved in the cotton market
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Cotton Corporation of IndiaSpeculative
Cotton Corporation of India might see stabilized raw material costs and supply for the cotton market due to the duty extension.