To create a level playing field with competing countries, The Cotton Textile Export Promotion Council of India (Texprocil) has urged the Government to allow duty-free import of Extra Long Staple type.

The import duty on cotton has been removed till October 31. However, the government has exempted the specialized cotton variety ELS which is not grown commercially in India.

Tge move will help fabric and home textile exporters to fulfill orders of global brands and retailers at competitive prices and increase exports as other competing countries such as Bangladesh, China and Vietnam allow duty-free cotton imports, says ManojPatodia, Chairman, Texprocil

The annual world export of knit fabrics is about $42 billion of which India’s share is just 1.8 per cent at $763 million. The remission rate of 1 per cent fixed for cotton knitted fabrics does not fully reimburse domestic taxes. The rates for knit fabrics should be 4.3 per cent which will be in line with the rate for woven fabrics.

In the next 5-7 years, India’s textile industry can expand to $250 billion and achieve an export target of $100 billion, Patodia adds.