The textile industry is requesting the government to reduce the cost of raw materials, eliminate cotton duties, and establish price stability in the upcoming budget.
the supply of raw substances at the world over competitive prices, the removal of import duty from the cotton fibre of all types, and the cotton rate stabilisation fund scheme are among the most important needs of the Indian textile & clothing enterprise beforehand of the Union budget 2025-26.
The Indian textile & clothing industry, in its pre-price range memorandum, demanded making sure the supply of uncooked materials at the world over aggressive costs.
Indian domestic uncooked material charges are drastically higher than worldwide charges. The industry body stated that even as competition like Bangladesh and Vietnam have unfastened get admission to to such raw substances, India has imposed QCO on MMF fibre/yarn, that’s acting as a non-tariff barrier on the imports of such uncooked materials and hence affecting their unfastened flow. It has ended in a scarcity of a few specialised fibre/yarn types and additionally impacted home prices, it added.
It demanded the removal of import obligation from the cotton fibre of all sorts, stating that the Indian cotton enterprise is uploading specialized types of cotton, which include contamination-unfastened, organic cotton, sustainable cotton, and so on., which are not to be had domestically.
The import duty that become imposed to safeguard the interest of farmers isn’t always serving its meant reason, as an alternative hurting the home cotton textile value chain, it stated. The industry frame counseled carrying out cotton buy operations on minimum support fee (MSP) through a right away gain transfer (DBT) mode.
The industry body demanded the Cotton rate Stabilisation Fund Scheme to permit the industry to overcome this issue of rate volatility.
“At gift the fabric mills are capable of avail operating capital most effective for three months from the banks, because of which turbines generally procure three months of cotton inventory on the begin of the season when the cotton costs are commonly cheaper. For the final months, the turbines supply cotton from the buyers and CCI, whose cotton charges vary in keeping with the marketplace conditions; therefore, it turns into hard for the turbines to devise their manufacturing schedule correctly. To permit the enterprise to overcome this issue of charge volatility, the authorities may don’t forget coming up with a Cotton charge Stabilisation Fund Scheme,” the enterprise frame delivered in the memorandum.
The industry body stated that the fund should be comprised of 5 in step with cent interest subvention or loan on the NABARD hobby charge (cotton being an agricultural commodity), a credit restriction length from three months to 8 months, and a reduction within the margin money for cotton operating capital from 25 per cent to 10 according to cent.
The enterprise additionally requested the authorities to exempt positive categories from the fine manage Orders (QCOs) to permit the enterprise to cater to the area of interest market primarily based out of such product classes.
