US cotton pushes for lower duty in India

Seeking relief for short staple exports -

June 20, 2024 The US cotton industry is advocating for the removal of an 11% import duty imposed by India on short staple cotton. This move aims to make US cotton more competitive for Indian textile producers.

While India recently removed a similar duty on superior quality, extra-long staple (ELS) cotton, the duty on short staple cotton remains in effect. The US industry argues that this duty hinders their exports and negatively impacts the Indian textile industry due to limited domestic cotton production.

Representatives from the US cotton industry believe that a reduction in import duty would benefit both countries.

Lower cotton prices would allow Indian textile mills to produce more competitive yarns, apparel, and home textile products. The US, on the other hand, could potentially increase its cotton exports to India.

India relies heavily on cotton imports to meet its textile industry's demands. The US, along with Egypt and Israel, is a major supplier of ELS cotton to India. The current duty structure specifically disadvantages US exports of short staple cotton.

The US cotton industry hopes that by working with Indian stakeholders, they can find a solution that benefits both parties.

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