SIMA Welcomes Extension Of Cotton Duty Exemption

(MENAFN- KNN India) New Delhi, Aug 29 (KNN) The Southern India Mills' Association (SIMA) has welcomed the government's decision to extend the exemption of the 11% import duty on cotton until December 31, 2025.

The association said this timely step would provide much-needed relief to textile mills struggling with rising costs and global trade challenges.

SIMA noted that the textile industry is under severe pressure following the recent 50% tariff hike by the United Stateson Indian textile exports.

With this exemption, mills can source high-quality cotton from international markets at competitive prices, which will help them remain globally competitive and fulfill export commitments.

According to SIMA, the extension will be especially useful in meeting export demand during the upcoming festive and summer seasons in international markets.

By ensuring stable raw material availability, the measure will allow manufacturers to keep production running smoothly and avoid disruptions in supply chains.

The association emphasised that the Indian textile sector plays a crucial role in the economy, supporting millions of jobs and contributing significantly to export earnings.

Affordable access to cotton is, therefore, vital not only for manufacturers but also for sustaining employment and maintaining India's export momentum.

While appreciating the government's support, SIMA also highlighted the importance of balancing the interests of farmers and industry.

The association believes that mechanisms such as Minimum Support Price (MSP) procurement will continue to safeguard farmers, while the exemption will benefit manufacturers and exporters.

SIMA expressed confidence that the extension will strengthen India's textile value chain, enhance competitiveness in global markets, and support the country's long-term vision of becoming a leading textile and apparel exporter.

(KNN Bureau)

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