Latest news with #AgricultureInfrastructureDevelopmentCess
Fashion Value Chain
20 hours ago
- Business
- Fashion Value Chain
SIMA Welcomes Cotton Import Duty Exemption
The Southern India Mills' Association (SIMA) has expressed gratitude to the Hon'ble Prime Minister Shri Narendra Modi and key Union Ministers for exempting all varieties of cotton from the 11% import duty, effective 19th August 2025. This decision comes as a significant relief to India's predominantly cotton-based textile industry, which provides direct employment to nearly 35 million people and contributes nearly 80% of the country's textile exports. The industry had long been burdened by the 11% duty introduced in February 2021, which included 5% Basic Customs Duty, 5% Agriculture Infrastructure Development Cess, and a 10% Social Welfare Surcharge. To address raw material shortages, the government earlier provided temporary exemptions between April and October 2022. These measures enabled the sector to capitalize on post-COVID demand, contributing to a business size of USD 172 billion, including USD 45 billion in exports. While India initially produced 350 lakh bales of cotton against a requirement of 335 lakh bales, a sharp decline in production to 294 lakh bales in 2024 created severe supply challenges. The industry particularly struggled with Extra-Long Staple (ELS) cotton, as domestic output stood at only 5 lakh bales against an annual requirement of 20 lakh bales. In February 2024, the government exempted ELS cotton imports from duty following industry appeals. Against this backdrop, SIMA consistently urged the government to remove or suspend duties during the off-season (April to September) to balance farmer interests with industry competitiveness. In a press statement, Dr. S.K. Sundararaman, Chairman, SIMA, thanked the Prime Minister, Union Finance Minister Smt. Nirmala Sitharaman, Union Agriculture Minister Shri Shivraj Singh Chouhan, Union Commerce and Industry Minister Shri Piyush Goyal, and Union Textiles Minister Shri Giriraj Singh for 'favourably considering the long pending demand of the industry and exempting all varieties of cotton from 11% import duty with effect from 19th August 2025.' Dr. Sundararaman emphasized that exempting cotton during the off-season is crucial for creating a win-win scenario for both farmers and the textile sector, enabling global competitiveness. He further highlighted that the duty exemption, coupled with the landmark UK Free Trade Agreement (FTA), will significantly boost India's textile exports to the UK and other global markets. He noted that while large exporters could utilize the Advance Authorization Scheme for duty-free imports, the fragmented MSME-driven textile sector requires direct access to imported cotton to meet both domestic and export obligations. Looking ahead, the SIMA Chief stated that duty exemption until 2030 is essential, as the Rs. 5,900 crore Mission for Cotton Productivity will require 5–7 years to achieve self-sufficiency. He stressed that this move is vital for realizing India's vision of raising textile exports from USD 37 billion to USD 100 billion by 2030.
Time of India
2 days ago
- Business
- Time of India
Scraping duty on cotton imports a death warrant for cotton growers: SKM
Bathinda: The Sanyukt Kisan Morcha has lodged a strong protest over the central govt's decision to relax the 11% import duty on cotton with immediate effect to overcome the impact of the 50% tariff imposed by the USA. The SKM termed the step as akin to a death warrant for cotton growers across the country. "The elimination of import duty will have a direct impact on the domestic price of cotton. Cotton prices will definitely fall, and farmers will face further distress and indebtedness. It is betrayal and duplicity of the govt," the SKM stated on Tuesday, the day the import duty relaxation came into force. The Union finance ministry on Monday notified the elimination of the 11% duty on cotton imports with immediate effect, which shall remain in force until Sept 30. The govt said the elimination of import duty on cotton, as well as the Agriculture Infrastructure Development Cess (AIDC), was necessary in the public interest. Cotton farmers have not been getting the MSP as per the C2+50% formula for many years. As per the minimum support price announced by the Commission for Agriculture Cost and Prices (CACP) for kharif crops in the year 2025, the MSP for cotton is Rs 7,710 for medium staple, which is Rs 2,365 less as compared to Rs 10,075 – the MSP that works out as per the C2+50% formula, claimed the farmers' body. The entire cotton area is the highest peasant suicide-prone region of India. The elimination of import duty on cotton will further eliminate the livelihood of lakhs of cotton farmers, the SKM added. In India, the area under cotton cultivation is around 120.55 lakh hectares, which represents about 36% of the world's total cotton area. The country is the world's largest in terms of cotton acreage. Approximately 67% of India's cotton cultivation relies on rain-fed areas, mentioned the SKM. The SKM called upon the cotton farmers to hold village-level meetings, adopt resolutions, and send these to the Prime Minister, urging him to withdraw the notification immediately and announce an MSP for cotton at Rs 10,075 per quintal. MSID:: 123388824 413 | Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Zawya
28-03-2025
- Business
- Zawya
India's steps to win over US President Trump, avert tariffs
India is one of the few nations working to lower tariffs and win over U.S. President Donald Trump, who has called the South Asian nation a "tariff king" and "tariff abuser" and has vowed to reciprocate. Both countries have started talks towards clinching an early trade deal and resolving their standoff on tariffs. This week, Reuters reported India was open to cutting tariffs on more than half of U.S. imports worth $23 billion. Since February, India has taken steps to win Trump's favour: INDIA PLANS ENERGY, DEFENCE BUYS FROM US New Delhi has promised to step up energy purchases from the United States to $25 billion in the near future from $15 billion last year. Trump also said he was paving the way to provide F-35 stealth fighters to India. The series of agreements emerged after talks at the White House between Trump and Indian Prime Minister Narendra Modi. India wants to increase by "billions of dollars" its purchases of U.S. defence equipment and may make Washington the number one supplier of oil and gas. SCRAPS DIGITAL AD TAX India will scrap a tax of 6% on digital advertisements online from April 1, the finance minister said on Tuesday, easing costs for U.S. tech giants such as Alphabet's Google , Meta and Amazon to soothe U.S. trade concerns. LOWER TARIFF ON BOURBON WHISKY India has slashed tariffs on bourbon whisky to 100% from 150%, standing to benefit imports of brands such as Suntory's Jim Beam, after Trump criticised its "unfair" levies. CUT IN BASIC CUSTOMS DUTIES In its budget on Feb.1, India slashed basic customs duties on items such as luxury cars, solar cells and machinery, reducing its peak import tariff to 70% from 150%, and average tariffs to below 11% from 13%. Though the effective rate on those items remained the same due to levy of a domestic tax called the Agriculture Infrastructure Development Cess (AIDC), but the government has vowed to remove that too as trade talks progress. STARLINK IN INDIA Elon Musk's Starlink partnered with Indian telecom giants Reliance and Airtel and is close to getting final regulatory approvals from the Indian government for satellite broadband service. India's approval is key as it would pave the road into more emerging markets and boost the company's ambitions to add a million subscribers every year.
Reuters
05-02-2025
- Business
- Reuters
Exclusive: India to review tariff surcharges on luxury cars, solar cells, may spur US imports
NEW DELHI, Feb 5 (Reuters) - India plans to review import tariffs on over 30 items, including luxury cars, solar cells and chemicals, a senior finance ministry official said, potentially leading to increased imports from the United States as global trade tensions grow. The move, aimed at reducing average tariffs, comes ahead of Prime Minister Narendra Modi's visit to the U.S. next week. In a bid to avoid President Donald Trump's growing tariff actions, India has already reduced average import tariff rates to 11% from 13% on several items in the latest budget. The finance ministry official did not give the time period for the completion of the consultation process, but industry analysts say the process could take months. Various Indian government departments, including those overseeing heavy industries and renewable energy, will soon consult local industry on reducing the Agriculture Infrastructure Development Cess (AIDC), Sanjay Agarwal, chairman of Central Board of Indirect Taxes and Customs, told Reuters in an interview on Tuesday. The AIDC is an alternative import tariff, collected by the Indian federal government for raising funds in a separate pool, and funds collected are used for building farm infrastructure. Agarwal said the ministries would select items from this list for possible tariff reduction after industry consultations. India has protected domestic industries such as autos, pharmaceuticals and farm sectors through state subsidies and high import tariffs, amid growing pressure to improve ties with the Trump administration. The list includes 32 items such as luxury cars, solar cells, yachts, sports vessels, devices used in building semiconductors, and other machinery, all of which have seen the government impose AIDC tariff of between 6.5% and 70% on imports, after reducing the basic customs duties. India's average import tariffs, including AIDC, are much higher than those of major trading partners including the United States, China and Japan, the official acknowledged. "We can't take a giant step. We have to take baby steps," Agarwal said, referencing India's strategy of gradually reducing tariffs to temporarily protect domestic industries and boost their competitiveness. TRADE BALANCE WITH THE U.S. Referring to Trump's concerns about the high U.S. trade imbalance with India, Agarwal said average tariffs on goods imported from the United States, are relatively low, and imports, especially of crude oil and liquefied natural gas, could increase this year. "Duty is not an issue in the oil sector. One (Indian) rupee per metric ton is the rate of duty on import of crude," he said, suggesting that U.S. crude could become more attractive for India as supplies from Russia face increased sanctions. India's trade surplus with the U.S., estimated at $35 billion in 2023/24, has been a highly contentious point following Trump's earlier threat of imposing tariffs over India's high levies. India's crude oil and LNG imports from the U.S., estimated at about $6.5 billion in 2023/24 fiscal year ending March, out of a total $42 billion imports, could increase after the U.S. sanctions on Russia' s oil companies and China 's retaliatory tariffs on energy imports from the U.S., analysts said. "We got better prices from Russia. But the situation may change," Agarwal said adding the trade imbalance could be "corrected." India's top 30 import items from the U.S., such as oil products and diamonds, all fall within low tariff category, with rates ranging from 3% on airplanes to 7.5% on petrochemicals, he said, indicating items where imports could potentially increase. here.
Reuters
05-02-2025
- Automotive
- Reuters
India to review tariff surcharge on luxury goods, renewables, chemicals amid US pressure
NEW DELHI, Feb 5 (Reuters) - India is set to review import tariffs on over 30 items including luxury cars and solar cells, potentially leading to higher imports from the United States, a senior finance ministry official said. In a bid to counter President Donald Trump's growing tariff actions, the government has already reduced tariffs on several items including high-end bikes, cars, and chemicals in the latest budget, while imposing additional Agriculture Infrastructure Development Cess (AIDC), an alternative tariff, on many items. Below is the list of key items on which AIDC tariff could be reviewed: CUT IN BASIC CUSTOMS DUTIES The Indian budget on Saturday slashed basic customs duties on several items including luxury cars, solar cells and machinery. The peak import tariff has been cut from 150% to 70%, and average tariffs to below 11% from 13%, while an alternative tariff called the Agriculture Infrastructure Development Cess (AIDC), has been raised on certain items. AGRICULTURE INFRASTRUCTURE DEVELOPMENT CESS After reducing peak import tariffs, India has introduced a special list of 32 items, including luxury cars and chemicals, upon which the AIDC tariff of 5% to 70% has been imposed. Earlier there was zero AIDC tariff on these items. LUXURY CARS, MOTOR VEHICLES Luxury cars with a CIF (cost, insurance and freight) value exceeding $40,000 attract a surcharge of 40%, along with a reduced basic custom duty of 70%. Transport vehicles and used motor vehicles face an AIDC tariff of 20% and 67.5% respectively, while basic customs duty has been lowered to 20% from 40%. Yachts and sports vessels attract a surcharge of 7.5%. SOLAR CELLS, MODULES Solar cells, modules, and other semiconductor devices attract a surcharge of 7.5% to 20% on top of a reduced import tariff of 20%, down from 25%-40%. CHEMICALS Laboratory chemicals now face a reduced basic customs duty of 70%, down from 150%, along with an agriculture cess of 70%. BUILDING MATERIAL Marbles, granite and slabs attract a surcharge of 20% on top of 20% basic customs duty of 20%, down from 40%. HOUSEHOLD ITEMS Footwear and materials for manufacturing them face a surcharge of 18.5% while items like bicycles attract surcharge of 15% after a reduced basic customs duty of 20%. Home furniture items, smart electricity meters, electronic toy parts attract the surcharge of 5% to 20%. here.
