New Delhi The U.S. industry body Cotton Council International (CCI) has called on the Indian government to remove the 11 per cent import duty on short staple cotton to reduce prices for the Indian textile industry, during a roundtable organized by CCI on Tuesday.
This request follows the February decision to remove the 10 per cent import duty on cotton with a staple length above 32 millimeters (mm), also known as Extra Long Staple (ELS) cotton.
Implemented on February 2, 2021, the import duty consists of a 5 per cent basic customs duty, a 5 per cent tax, and a 1 per cent social welfare charge.
Marc A Lewkowitz, President and CEO of SUPIMA, during a roundtable organized by CCI, said, “One significant challenge is the 11 per cent import duty on U.S. cotton, which negatively impacts the domestic textile industry.”
Lewkowitz highlighted that ELS cotton production in India accounts for less than 1 per cent of the total cotton production, benefiting textile mills that manufacture products using imported ELS cotton. The United States, Egypt, and Israel are major suppliers of ELS cotton to India.
“India’s textile industry is projected to grow to $350 billion by 2025. As a key market for U.S. cotton, there is substantial opportunity to expand our cooperation,” said Bruce Atherley, CCI Executive Director. “Our discussions emphasized the strategic importance of this partnership in fostering sustainable practices and economic growth in both countries.”
Despite a 6.91 per cent year-on-year growth in textile exports in March, India’s ambitious target of $100 billion in textile exports by 2030 requires robust international trade pathways and collaborative action.
“India’s impressive textile manufacturing ecosystem is ripe with expansion opportunities, and at Supima, we are excited about the partnership prospects,” commented Lewkowitz. “The increasing demand for premium SUPIMA cotton underscores the need to scale production to meet global needs.”
Peush Narang, CCI’s representative for India and Sri Lanka, said, “Our partnership with the Indian textile industry will propel both industries. Using U.S. cotton, Indian manufacturers can meet global quality standards and enhance their competitive edge. The COTTON USA experience offers full supply chain traceability, the COTTON USA SOLUTIONS technical servicing program, and a suite of services, data, and intelligence that no other cotton can provide.”
