Cotton Rates May Decline On Zero Import Duty - July 10, 2008

Chennai: Cotton rates in the domestic market are set to fall with the Union Government removing the 14 per cent duty on import of cotton yielding to the long-time demand from the textile industry. Welcoming the decision of the Centre, Mr D.K. Nair, Secretary-General of the Confederation of Indian Textile Industry (CITI), said that this declaration will have a psychological impact and prices of cotton will naturally come down. India now imports cotton from the US, Brazil and South African nations. Cotton imports have fell from around 17 lakh bales (of 170 kg ) in 2002-03 to 5 lakh bales in 2006-07. Imports are hoped to be around 6.5 lakh bales this season. Exports totaled 58 lakh bales in 2006-07 against 47 lakh bales in 2005-06. Cotton output was at a record high of 270 lakh bales in 2006-07 cotton season and is likely to touch 315 lakh bales in the current season.