IMPORT DUTY ON COTTON - ECONOMY
News: SIMA seeks removal of import duty on cotton
What's in the news?
● Recently,
the textile industry has sought withdrawal of import duty on at least some
varieties of cotton from June to October as was done during the last cotton
season from April to October to bring stability in cotton prices in the coming
months.
Key takeaways from the news:
● Almost
270 lakh bales of cotton have arrived in the market during the current cotton
season (October 2022 - September 2023) as against the estimated production of
337 lakh bales.
● The
monthly arrival in April was 42.82 lakh bales as against 7.39 lakh bales last
April.
Cotton:
● It
is a Kharif crop.
● Temperature:
Cotton is the crop of tropical and subtropical areas and requires uniformly high temperatures varying between 21°C and
30°C. The growth of cotton is retarded when the temperature falls below
20°C.
● Rainfall:
Cotton is a drought – resistant crop
ideal for arid climates and requires an average annual rainfall of 50- 100 cm.
● Ideal
condition: It requires at least 210
frost free days in a year.
● India
is the second largest producer of
cotton in the world after China.
Cotton Corporation of India(CCI):
● CCI
was established on 31st July 1970
under the administrative control of the Ministry
of Textiles.
● Headquarters:
Navi Mumbai, Maharashtra.
● CCI
operates in the following states as of now – Punjab, Haryana, Rajasthan,
Gujarat, Maharashtra, Madhya Pradesh, Andhra Pradesh, Karnataka, Tamil Nadu and
Orissa.
● Role:
Undertake price support operations, whenever the market prices of cotton falls
below the minimum support prices.