Commerce minister Piyush Goyal has asked the cotton spinners and traders to prioritise supply of cotton and yarn to the domestic industry. This comes after a crucial meeting between industry stakeholders and the government on Tuesday evening on rising cotton prices in the country.
The government has also formed a ‘Cotton Council of India’ to look into issues faced by the industry and prepare an action plan to improve the situation. The council will have representatives from various ministries, including textiles, commerce and finance.
Mint on Tuesday reported that cotton traders have been asked to reduce exports by 25% compared to last year to cater to domestic needs.
Goyal assured the stakeholders that he would consider the demand of the spinning sector for exemption from import duty on import contracts in which bills of lading are issued up to 30 September 2022 to overcome cotton shortages and logistic issues.
Amid a widespread call for a ban on cotton exports, Goyal asked stakeholders to resolve the cotton and yarn price issue “without pushing the government to intervene as it may have a long-term impact on the cotton value chain”.