Home / Knowledge / News / Textiles / Indian Ministers reject levy of duty on cotton exports
Indian Ministers reject levy of duty on cotton exports
25
Oct '13
A Group of Ministers (GoM) has rejected the Indian Textiles Ministry’s proposal to impose a 10 percent duty on cotton exports beyond the declared surplus quantity.
 
India’s cotton production has been increasing every year, and in such a situation, the GoM recommended that there should be no restrictions on export of raw cotton and hence, there should not be any duty on export, Agriculture Minister Sharad Pawar, who headed the GoM, told reporters after the GoM meeting.
 
Mr. Pawar said the meeting advocated a free market for cotton, and it was of the opinion that any export duty or quantitative restriction on cotton exports would only penalize farmers.
 
Last month, the Textiles Ministry placed a proposal before the Cabinet Committee on Economic Affairs (CCEA) to impose a 10 percent ad valorem export duty at freight on board (FOB) or Rs. 10,000 per ton, whichever is less, for all cotton exports exceeding the “declared/revised exportable surplus”.
 
The proposal was aimed at putting in place a stable, transparent, production and tariff driven cotton market to balance the interests of stakeholders in the entire value-chain, according to the Ministry.
 
However, the CCEA deferred a decision on the proposal and referred it to the GoM, comprising of the Minister of Agriculture, Textiles Minster K Sambasiva Rao, Commerce Minister Anand Sharma and others.
 
The GoM has now advocated continuation of the current free-trade regime. At present, once the export contracts are registered with the Directorate General of Foreign Trade (DGFT), there is neither any restriction on the quantity of shipment of cotton, nor there is any export duty.
 
India is currently the second-largest producer and exporter of cotton. Over 70 percent of India’s cotton exports are destined to China.
 
Last marketing year which ended on September 30, 2013, India exported about 10 million bales (1 bale = 170 kg) of cotton, compared to 12.95 million bales exported during the previous marketing year.
 
The Textiles Ministry estimates India’s cotton production during the 2013-14 season to escalate to 37-37.5 million bales, compared to production of 34 million bales in 2012-13.
 

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 16th Oct 2021

China's economic growth reflects strong resilience, vitality: Li

Premier Li Keqiang has said China is capable and confident of...

Pic: Shutterstock

Apparel/Garments | On 16th Oct 2021

BGMEA urges Bangladesh govt to reskill & upskill RMG workers

The Bangladesh Garment Manufacturers and Exporters Association...

Pic: Shutterstock

Retail | On 16th Oct 2021

UK retail sales rises by 0.6% in Sep 2021; figure 5.6% in Sep 2020

Total UK retail sales rose by 0.6 per cent in September this year...

Interviews View All

Textile Industry, Head Honchos

Textile Industry
Head Honchos

Increase foreign exchange and create jobs

Textile Industry, Head honchos

Textile Industry
Head honchos

Consistency is the first rule of social media

Florian Heubrandner, Lenzing AG

Florian Heubrandner
Lenzing AG

Cannot see the world breaking away from cotton & polyester

Seema Mishra,

Seema Mishra

Set up in January 2020 by <b>Seema Mishra</b>, the Kasrawad Art Cluster...

Sanjay Jhunjhunwalla,

Sanjay Jhunjhunwalla

In the financial hub of eastern India, Kolkata, a humble production...

C Maennich,

C Maennich

Trützschler, one of the world's leading textile machinery manufacturers,...

Shaan Sethi, Jaanuu

Shaan Sethi
Jaanuu

Jaanuu, a vertically integrated e-commerce company, has reimagined the...

 Natacha Defeche, Edana

Natacha Defeche
Edana

Since 1971, EDANA, the International association serving the nonwovens and ...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

Designer <b>Suman Nathwani</b> talks about her journey of opening a...

Abhishek Agarwal, Purple Style Labs

Abhishek Agarwal
Purple Style Labs

Late Indian fashion designer Wendell Rodricks, is known for his...

Gavin Miguel, Label Gavin Miguel

Gavin Miguel
Label Gavin Miguel

Acclaimed fashion designer <b>Gavin Migue</b>l is known for his couture...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search