Commerce Minister Piyush Goyal has asked cotton spinners and traders to prioritize the supply of cotton and yarn to the domestic industry. It comes after a crucial meeting between industry players and the government on Tuesday night over rising cotton prices in the country.
The government has also formed a “Cotton Council of India” to review the problems faced by the industry and prepare an action plan to improve the situation. The council will be made up of representatives from various ministries, including textiles, trade and finance.
Mint reported on Tuesday that cotton traders have been told to cut exports by 25% from a year ago to meet domestic needs.
Goyal assured stakeholders that he would consider the spinning industry’s request for import duty exemption on import contracts in which bills of lading are issued until September 30, 2022 to overcome cotton shortages and logistical issues.
Amid widespread calls for a ban on cotton exports, Goyal called on stakeholders to address the cotton and yarn price issue “without pushing the government to intervene as it could have a long-term impact on the cotton value chain”.