The Union Ministry of Textiles is reviewing a recommendation from the Textile Commissioner’s Office to suspend import duty on cotton during the April–September period each year for the next five years, following requests from the textile industry.
The proposal was discussed during a recent meeting of the Committee on Cotton Production and Consumption held in Mumbai and has since been submitted to the Ministry of Textiles for consideration. A senior ministry official, who interacted with industry representatives during a stakeholders’ meeting in Coimbatore on Thursday, said the recommendation was made after representations from the cotton-consuming industry.
The official stated that the move was aimed at addressing concerns over raw material availability and costs faced by the textile sector.
On the long-pending demand to reduce the hank yarn obligation for textile mills, Textile Commissioner Vrunda Manohar Desai said the government was expected to issue an order by the end of the current quarter or early in the next quarter to reduce the obligation.
Desai also said that the proposed Textile Expansion and Employment Scheme and Tex Eco schemes were expected to encourage fresh investments in the textile industry and were likely to be implemented between August and September this year.
She further noted that the Ministry was also examining the imposition of duties on certain fabric imports in an effort to safeguard the domestic garment industry from low-cost imports.
Addressing the issue of 855 grievances pending under the Amended Technology Upgradation Fund Scheme (ATUFS), Desai said the government was working towards a positive resolution. However, she added that cases could be closed if companies failed to provide the required alternative documentation.
She also urged textile companies to submit their production details regularly, adding that the industry’s suggestion to link the filing of returns with access to government schemes or bank loans would be examined by the Ministry.
Meanwhile, R. Lalitha, Commissioner, Department of Textiles, Tamil Nadu, highlighted the scale and complexity of the textile sector in Tamil Nadu, stating that the State faced distinct challenges due to the size of its industry.
Lalitha said the Tamil Nadu government had written to the Centre seeking the removal of import duty on cotton and had also urged the Union Ministry of Textiles to facilitate the establishment of a warehouse by the Cotton Corporation of India in the State.
