India's Ministry of Finance, Nirmala Sitharaman, announces a tail tax on cotton imports to support its farmers. Farmers in India, the world's largest cotton producer, have been angry for two months. In response to their demand, the authorities decided to impose a 10% tax on cotton imports. In addition to this tax, the Ministry of Finance, Nirmala Sitharaman, during the presentation to Parliament of the 2021/22 budget announced an increase in customs duties on raw silk and silk threads from 10 to 15%. Also, the basic customs duties on synthetic or artificial fibers (caprolactam, nylon shavings, nylon fiber and thread) have been standardized and reduced to 5% against 7.5%.
Cotton Association of India (CAI) Chairman Atul Ganatra says the country has already imported 600,000 bales of cotton in the 2020/21 marketing year which started on October 1. An additional 800,000 bales should come from outside the country to compete with local production.