The Indian Government on Thursday decided to exempt all customs duty on the import of cotton to lower the price of cotton in the public interest.
This exemption would benefit the textile chain- yarn, fabric, garments, and made-ups and provide relief to the textile industry and consumers.
The industry has been demanding the removal of 5% Basic Customs Duty (BCD) and 5% Agriculture Infrastructure and Development Cess (AIDC) on raw cotton.
The Central Board of Indirect Taxes and Customs (CBIC) notified the exemption from Customs duty and Agriculture Infrastructure development Cess for import of cotton.
This notification shall come into effect from 14th April 2022 and will remain in force up to and inclusive of 30th September 2022.
Removal of import duty on raw cotton should have a salutary effect on cotton prices in India.
It may be noted that the export of Textiles and Apparel registered a growth of 49% during April – January 2021-22 compared to the same period in 2020-21.
