The South Indian Textile Association (SIMA) has called on the central government to waive the 11% cotton import tax by October this year, similar to the exemption from April October 2022.
Due to inflation and declining demand in major importing countries, the demand for cotton textiles has sharply declined since April 2022. In 2022, global cotton textile exports decreased to $143.87 billion, with $154 billion and $170 billion in 2021 and 2020, respectively.
RaviSam, the South Indian Textile Industry Association, stated that as of March 31, the cotton arrival rate for this year was less than 60%, with a typical arrival rate of 85-90% for decades. During the peak period last year (December February), the price of seed cotton was approximately 9000 rupees per kilogram (100 kilograms), with a daily delivery volume of 132-2200 packages. However, in April 2022, the price of seed cotton exceeded 11000 rupees per kilogram. It is difficult to harvest cotton during the rainy season. Before new cotton enters the market, the cotton industry may face cotton shortages at the end and beginning of the season. Therefore, it is recommended to exempt 11% import tariffs on cotton and other cotton varieties from June to October, similar to the exemption from April to October 2022.
Post time: May-31-2023