Texprocil, a non-profit export promotion body, has urged the Government to request China to reduce its import duty on textiles to 5 per cent from 10 per cent.

Manikam Ramaswami, Chairman, Texprocil, said the council had met representatives of the Chinese National Textiles and Apparel Council, which advises the Chinese Government on its textile policy, and asked them to urge their Government to cut duty on textile imports from India.

“China is willing to cut the duty by half if the Indian Government approaches it. If our request is met, we can increase our exports to China by $7 billion from the current $3.5 billion,” said Ramaswami.

India has $32-billion trade deficit with China. Interestingly, imports worth $12 billion from China are allowed duty-free or at lower rates. While India has given sops for imports from China, it has not lobbied for any reciprocal concessions, he said.

China imports cotton textiles worth $20 billion annually from different countries.

On the other hand, Ramaswami said Pakistan allowed duty-free import of $1-billion textile machinery from China, and in return has obtained permission to export its fabrics free of duty to China.

Despite cotton prices in India hovering above international prices, the council is confident that the textile export target of $13.5 billion would be met this fiscal.

Due to high cotton prices in India, the industry is expected to import 10-15 lakh bales of medium staple cotton this year from Africa, in addition to 10 lakh bales of long staple cotton.

“It is a pity that India, which is a surplus cotton producing country, has to resort to imports,” he said.

Though cotton prices in India have softened from ₹47,000 to ₹44,000 a bale in the last two months, it is still higher than the ₹42,000 a bale prevailing in the international markets, said Ramaswami.

Texprocil has suggested that the Cotton Corporation of India (CCI), a government body, which buys cotton at the minimum support price fixed by the Government, should act when prices in the domestic market go up, defying the global trend.

The board of CCI needs also to be revamped to include stake holders to give commercial advice.

The board currently consists of a joint secretary and three executives appointed by the Government, he said.

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