US cotton industry seeks removal of 11% import duty on short staple cotton

The US industry body Cotton Council International on Tuesday asked the government to remove 11 per cent import duty on short staple cotton, in a bid to bring down its prices for the benefit of the Indian textile industry.

In February, the government had removed the import duty of 10 per cent for cotton with a staple length above 32 millimeters (mm), also known as Extra Long Staple (ELS) cotton.

However, the import duty of 11 per cent on imported cotton below staple length of 32 mm remains in effect.

On February 1, 2021, the government announced an 11 per cent duty on imported cotton, effective February 2, 2021. The duty comprised of five per cent basic customs duty, five per cent tax, and one per cent social welfare charge.

"As US Cotton industry we are here to have a conversation with our partners and to get a better understanding of the challenges and how we can help facilitate a positive change. One of the issues that is a challenge to us is the import duty of about 11 per cent