Spinning mills call for permanent removal of import duty on cotton

The Union government should remove the 11 % import duty on cotton permanently to control volatility in cotton prices, said Durai Palaniswamy, chairman of the Southern India Mills’ Association (SIMA).

In a statement, Mr. Palaniswamy, who was re-elected chairman of the Association at its annual meeting on Tuesday, said, “Curbing speculation in the raw material prices is essential to provide a level- playing field for the entire textile value chain.” The government should curb the import parity price policy adopted by the Cotton Corporation of India and cotton trade.

The government should also consider changing the role of the CCI on a par with China National Cotton Reserves Corporation that maintains more than a year’s stock of cotton and always maintain stability in prices, he said.