The finance ministry has prolonged the exemption of customs duty on raw cotton imports by a month till October 31.
On April 14, the ministry had given exemption from the duty and Agriculture Infrastructure Development Cess (AIDC) till September 30, 2022, for import of cotton to decrease costs within the home market.
In a notification dated July 4, the ministry prolonged this till October 31, 2022.
Amid rise in cotton and yarn costs, the textiles ministry had been pitching for an extension of the duty waiver past September.
Industry too had been demanding extension of the duty-free import of cotton. Before April 14, raw cotton imports attracted 5 per cent Basic Customs Duty (BCD) and an equal share of AIDC.
The exemption from duty would profit the textile chain — yarn, cloth, clothes and made-ups — and supply aid to customers.
Cotton costs have elevated from Rs 44,500 per sweet in February, 2021, to Rs 90,000 per sweet in March 2022. Each sweet weights 356 kilogram.
The steep improve in cotton value and its impression on the costs of yarns and materials is severely impacting the potential development of the cotton textile worth chain, trade gamers stated.
(Only the headline and film of this report might have been reworked by the Business Standard employees; the remainder of the content material is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has all the time strived laborious to offer up-to-date info and commentary on developments which might be of curiosity to you and have wider political and financial implications for the nation and the world. Your encouragement and fixed suggestions on the right way to enhance our providing have solely made our resolve and dedication to those beliefs stronger. Even throughout these troublesome instances arising out of (*31*)-19, we proceed to stay dedicated to retaining you knowledgeable and up to date with credible information, authoritative views and incisive commentary on topical problems with relevance.
We, nevertheless, have a request.
As we battle the financial impression of the pandemic, we’d like your help much more, in order that we will proceed to give you extra high quality content material. Our subscription mannequin has seen an encouraging response from a lot of you, who’ve subscribed to our on-line content material. More subscription to our on-line content material can solely assist us obtain the targets of providing you even higher and extra related content material. We imagine in free, truthful and credible journalism. Your help by means of extra subscriptions might help us practise the journalism to which we’re dedicated.
Support high quality journalism and subscribe to Business Standard.
Digital Editor