The exemption of import duty on cotton till September 30 will boost textile exports to $60 billion in the current fiscal year, says Home Textile Exporters Welfare Association (HEWA). Exemption will not only benefit the entire textile value chain but also ease demand pressure and stabilize cotton prices, says HEWA in a KNN India report. Another benefit of the exemption includes end of volatile situation persisting since the last six months, which would help the textile exporters achieve splendid growth in FY23, adds the association.

HEWA says, the government needs to stop the uncontrolled exports of raw materials to nations such as China and Bangladesh as they are disrupting the current supply-demand cycle. Rise in cotton prices since October 2021 impacted textile exports in 2022, it adds.