Few of India’s large mills have contracted for import of around 3 lakh bales of cotton of 170 kg each which are likely to reach ports in mid-June. These mills had placed orders immediately after the government announced the temporary removal of import duty on cotton in mid-April. The mills have mainly purchased short staple cotton from the US.
According to industry sources, few big mills contracted for import of 27.5 mm short staple cotton immediately after the notification. According to market estimates, import deals were finalised at around ₹89,000 per candy of 356 kg each (FOB). Generally, Indian textile industry consumes 28.5 mm medium staple cotton for mostly textile products. Short staple cotton can be used after blending with medium staple cotton.
Chetan Bhojani, a cotton trader from Gujarat, told Fibre2Fashion that cotton import is not viable duty higher prices in international markets. However, mills had imported American cotton just to ensure supply in the coming months. “There is no relief for the industry by the removal of import duty of around 11 per cent because cotton is expensive in international markets.”
Read more about 3 lakh bales of duty-free imported cotton to reach India by mid-June