Southern India Mills’ Association seeks removal of cotton import duty
What happened
The chairman of the Southern India Mills’ Association, Durai Palaniswamy, stated that the Union government should permanently remove the 11% import duty on cotton. He argued this is necessary to control volatility in cotton prices and ensure a level playing field for the entire textile value chain. SIMA also suggested changing the role of the Cotton Corporation of India to maintain price stability, similar to the China National Cotton Reserves Corporation.
From thehindu.com
Why it matters
The request targets the import parity price policy used by the Cotton Corporation of India. SIMA argues that curbing speculation in raw material prices is essential for the future growth and global competitiveness of the Indian textile industry.
Openend spinning mills in Tamil Nadu are currently facing challenges related to production sustainability, price absorption in the home textile sector, and policy control over waste cotton exports.
From thehindu.com
Who's involved
- Cotton Corporation of IndiaManages and stabilizes the national cotton supply.
- Tamil NaduState where openend spinning mills are facing production challenges.
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
The Cotton Corporation of India might face a policy challenge to its import parity price control mechanism.
- Tamil NaduSpeculative
Mills in Tamil Nadu could see changes in raw material input costs, affecting their production costs.
Keep exploring
The entities involved
-
Cotton Corporation of India
Central Public Sector Undertaking
Nothing else this week.