Custom duty on raw cotton scrappedJuly 9th, 2008 - 7:37 pm ICT by IANS
New Delhi, July 9 (IANS) India has scrapped import duty on raw cotton and withdrawn export incentives to boost domestic stocks, it was announced Wednesday. The government said in a statement the new rules would be applied from July 8.
The Confederation of Indian Textile Industry (CITI) said last week that the growth in imports had been slowed by duties that added up to 14 percent.
Cotton output is expected to hit a record 35 million bales in the next crop year, government estimates show, largely due to increasing usage of genetically modified seeds.
India’s cotton exports are seen rising by 72 percent to 10 million bales in the crop year to September, while production is forecast to rise 17 percent to a record 31.5 million bales in 2007-08, according to CITI.
Tags: 10 million, 5 million, bales, citi, confederation, cotton exports, cotton output, custom duty, domestic stocks, government estimates, import duty, incentives, India, indian textile industry, New Delhi, raw cotton, seeds