Cotton Imports

The duty cut made refined palm oil imports lucrative for Indian refiners, which traditionally prefer to import crude palm oil

There is a shortage of demand for textile goods globally due to the Ukraine-Russia war

Pakistan's Finance Minister Miftah Ismail on Wednesday said that the country's textile sector had demanded lifting of a ban on the import of cotton from India, but the government has so far not taken any decision on the issue. Addressing a press conference along with Defence Minister Khawaja Asif here, Ismail talked about the damage caused to the cotton crop due to devastating floods that have affected more than 33 million people, inundated a third of the country and caused losses of more than USD 10 billion. Replying to a question with respect to trade with India, the minister said that the All Pakistan Textile Mills Association (APTMA) was asking the federal government to allow import of cotton from India. "The government has not taken any decision yet," he said, without elaborating when such a decision could be taken. Pakistan suspended trade with India after the latter revoked the special status of Jammu and Kashmir in August 2019. But the ban is hurting the crisis-hit country

This confluence of extreme weather events brought on by climate change has sent cotton prices soaring by as much as 30%

The finance ministry has extended the exemption of customs duty on raw cotton imports by a month till October 31. On April 14, the ministry had given exemption from the duty and Agriculture Infrastructure Development Cess (AIDC) till September 30, 2022, for import of cotton to lower prices in the domestic market. In a notification dated July 4, the ministry extended this till October 31, 2022. Amid rise in cotton and yarn prices, the textiles ministry had been pitching for an extension of the duty waiver beyond September. Industry too had been demanding extension of the duty-free import of cotton. Before April 14, raw cotton imports attracted 5 per cent Basic Customs Duty (BCD) and an equal percentage of AIDC. The exemption from duty would benefit the textile chain -- yarn, fabric, garments and made-ups -- and provide relief to consumers. Cotton prices have increased from Rs 44,500 per candy in February, 2021, to Rs 90,000 per candy in March 2022. Each candy weights 356 kilogram.

Group representing farmers protests government dropping customs duty on imports, calls it disastrous

Currently, cotton imports attract 5 per cent Basic Customs Duty (BCD) and 5 per cent Agriculture Infrastructure Development Cess (AIDC)

India saw its highest monsoon rainfall in 25 years during the June-September season and rains even continued in October and November.

Quality of output is another nagging issue, as the raw cotton produced this year cannot be used by spinning mills

The country could import 2.7 million bales in 2018/19 marketing year ending on September 30, up from 1.5 million bales a year ago, he said.

Punjab has already asked the federal government to announce the intervention price.