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Remove 10% customs duty on cotton yarn: AEPC
September, 04th 2012

Citing the steep increase in cotton yarn prices, the Apparel Export Promotion Council (AEPC) has has requested the
Commerce Ministry to remove the 10 per cent customs duty on it as well for yarn imports, to be made duty free.

In a letter to Union Commerce Minister Anand Sharma, AEPC Chairman A Sakthivel said: "At this stage we are not advocating any cap on
exports, but at the same time, we request that the 10 per cent customs duty on cotton yarn be completely removed".

He said cotton yarn price should be carefully monitored as small manufacturers and handloom weavers were "impacted".

"In the last few months, we have experienced volatility in the price of cotton yarn. While (price of) cotton has gone up by 3-5 per cent in
the last two months, yarn prices have increased to 15 per cent plus", Sakthivel said.

He said cotton yarn prices are comparatively higher than other countries, including Pakistan and CIS (Commonwealth of Independent States).

 
 
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