Cotton import duty abolished, much awaited relief to Indian textile industry

The government has scrapped 10 % import duty on cotton and withdrew incentives of 1% duty draw back on exports of raw cotton to boost domestic supply for the textile industry. This moved was much awaited by textile sector. The government has made this move after seeing the raise in domestic cotton price. Recent article from times of India exposed the price of domestic price of shankar-6 to around 80 cents/pounds (after ginning) and this is expect to reach 90 cents with inclusion of transportation cost but international price for similar variety was around 73 cents/pound. textile sector expect to see reason fall in the prices of cotton after this scrapping of import duty.