Cotton export duty may control price rise

CottonThe Government is expecting to get Rs 2,500-per-tonne duty on raw cotton exports and estimates that this can neutralize the rising price of cotton in the domestic market. Further it can help India to strengthen its stand in the international market.

According to sources, the Central Board of Excise and Customs may impose the duty. This has endured an immediate rise of the cotton price since few months.

Last week, the Indian Finance Minister, Mr. Pranab Mukherjee has conducted a high level meeting to finalize these price related issues. After the meeting, the export duty for six months had been levied. The textile ministry had issued a notice regarding the duty after the discussion. However, the domestic textile industry has been pitching for cotton export restrictions. This has been due to the sheer rise in prices of the natural fiber. The Apparel Export Promotion Council (AEPC) has also appreciated the progress and thanked Mr. Dayanidhi Maran, Textile Minister of India to take the initiative for such a remarkable move.

The government has decided to suspend the duty concession of 7.5% for cotton yarn exports under the Duty Entitlement Pass Book scheme. It is expected to pull the fabric prices down to realistic levels.