TIRUPPUR: Exporters in Tiruppur welcomed the centre’s move to temporarily lift import duty on cotton, and have demanded that the move be made permanent. They, however, stated that this would not offset the impact of the US tariffs. On Monday, the central government removed the 11% import duty on cotton, and said that it will continue till September 30.
N Thirukkumaran, general secretary of Tiruppur Exporters’ Association (TEA), said, “Removing 11 % import duty on cotton is one of our long-standing demands as the price of cotton in India is high as compared to the international market. This issue predates the US President’s tariff action. We welcome this move by the centre. However, import duty should be removed permanently.”
“Cotton prices will stabilise as import duty is removed. Yarn prices will also stabilise. If the price of yarn decreases as a result, the export sector in Tiruppur will benefit. But this will not be a solution to the impact caused by the US tariff hike,” he added.
MP Muthurathinam, president of Tirupur Exporters and Manufacturers Association (TEAMA), said, “We will not benefit much from the short-term removal of import duty on cotton. Permanent removal of duty will benefit us. Only then will the price of cotton and yarn be stable.” S Saravanan, core committee member of Tiruppur Yarn Manufacturers Association said,
“This will benefit those who have already ordered and are ready to import cotton from the global market. This will not help those who think that they can order cotton from the international market after removal of duty. If we order now, we will get cotton after 75 days.
But the central government has only removed the duty till September 30. If this is extended, it will benefit the mills. The central government should permanently remove this duty. Otherwise, it should be removed from April to September, which is the off-season for cotton.”
“On Tuesday, the price of cotton in India was Rs 59,000 per candy of cotton (a candy is about 356 kg). In the global market, the price was between Rs 54,000-Rs 55,000,” he added.