India’s Finance Ministry has refused to remove 10 per cent duty on cotton imports saying it benefits domestic producers. However, garment manufacturers argue the 10 cent duty on cotton imports makes export of high-quality clothing uncompetitive in the international market, reports United News of India. Amit Sethi, Joint Managing Director, Orient Fashions alleges, the duty makes import of high-quality cotton from Australia and America expensive. This makes India uncompetitive in the international high-end clothing market, he adds.

As per finance minister Nirmala Sitharaman, the decision to impose duty on imports of cotton has been taken to benefit domestic cotton farmers which in turn would help in higher domestic value addition and reduce import dependence. Garment exporters would not be affected as exporters may avail benefit of schemes like advance authorization, duty drawback, EoU, SEZ etc. Further, RoSCTL scheme for garment and made-ups has also been extended till March 2024. Further incentives under various schemes are also being provided to the garment sector, she added.

By Fashionating World
https://www.fashionatingworld.com/new1-2/finance-ministry-refuses-to-remove-duty-on-cotton-imports