Indian textile sector seeks rollback of 11% cotton import duty
Business
India's textile sector is urging the government to drop the 11% import duty on cotton, saying it's making local cotton more expensive than what other countries pay.
With prices up and production down, they're worried about losing their edge in global markets.
Textile industry warns $1.2B export loss
A new CITI report points out that rival Asian countries don't have these duties, giving them an advantage.
The industry also suggests creating a strategic cotton reserve and a price stabilization fund to help deal with sudden price spikes and keep mills running smoothly.
If things don't change, India could lose up to $1.2 billion a year as exports fall, a big hit for one of the country's major industries.