No plans to cut or ban import duty: Pillai

NEW DELHI: Government is not planning to slash import duty on cotton or ban its exports as demanded by the textile industry for boosting supplies and easing prices in the domestic market.

"At the moment, there is no plan to cut the import duty on cotton," Commerce Secretary Gopal Pillai said.

At present, there is a 10 per cent customs duty and four per cent import tax on cotton.

He also ruled out any plans to ban cotton exports as being demanded by textile mills since cotton prices in the global market were ruling lower than those in the country.

There is no point in banning exports at a time when the international prices are lower than the domestic prices, he said. The domestic cotton textiles industry has been demanding duty-free import of cotton to boost supplies and bring down prices that have increased by over 35 per cent in the last one year across varieties.

While the prices of Punjab cotton have shot up by 60 per cent, those of Gujarat variety increased by about 50-55 per cent.

According to the Confederation of Indian Textile Industries, India has exported about 85 lakh bales of cotton, which can go up to 100 lakh bales in the next 3-4 months.

Pillai added that the Commerce Ministry is holding discussions with the Textile Ministry to work out plans to help the labour-intensive sector.

The textile industry, one of the worst hit by the over 13 per cent rupee appreciation last year as well as rising input costs, has witnessed 3.5 lakh job losses this year.

"Textiles is a cause of worry. We are now trying to see what we can do," Pillai said.