Textile mills in India have reiterated their demand to remove the import duty on cotton as prices of domestic cotton continue to increase.
Ravi Sam, Chairman, Southern India Mills’ Associations, notes, cotton prices have surged by 70 per cent higher than the Minimum Support Prices and Indian cotton prices have surged ahead of international prices.
Cotton prices have surged to Rs 77,000 a candy from Rs74,000 a candy on January 4. Cotton yarn price, for the variety used widely by the hosiery sector, stood at Rs331 a kg in April, 2021 and was currently Rs401 a kg.
Just about 140 lakh bales have come into the market so far this season (October 2021 to September 2022) though the usual arrivals by now will be almost 200 lakh bales. The textile industry is also staring at shortage in availability of quality cotton.
Apart from removing the import duty on cotton, the government should also bring in measures to monitor cotton trade on the MCX and NCDEX to avoid speculation, he added.