Mixed reaction from textile units in Coimbatore

With no specific announcement in the Union Budget that will directly benefit the textile and clothing sector, the industry has said steps to support MSMEs and attract investments will benefit the text

With no specific announcement in the Union Budget that will directly benefit the textile and clothing sector, the industry has said steps to support MSMEs and attract investments will benefit the textile industry too. However, there should be measures to control raw material prices, the industry associations said.

According to Southern India Mills Association, steep increase in international cotton prices and consequential domestic cotton price has fetched the Indian cotton farmers high revenue for their produce during the current season. But, this has also impacted the cotton textile value chain. India has started achieving substantial growth rate, in the domestic and international cotton textiles and clothing market that is likely to fuel the cotton consumption by 15% to 20% during the current season (October 2021 to September 2022) resulting in shortage of cotton. The Union Government should consider the demand of exempting ELS cotton and sustainable cotton from the levy of 11% Import Duty.

The Cotton Textiles Export Promotion Council expressed concern that made ups sector that contribute significantly towards exports has been left out of the facility of duty free imports of specified goods by bonafide exporters. The government should re-consider the Customs Duty imposed on cotton.