The hike in the basic import duty on cotton from 5 per cent to 10 per cent will have an adverse effect on the Indian textiles industry and make its products costlier in the domestic and international markets, a senior official of the Indian Cotton Mills Federation (ICMF) said.
The Centre has hiked the duty on cotton which is not carded or combed to 10 per cent from the existing 5 per cent in order to curb imports. The notification was issued today.
Rajaram Jaipuria, chairman of ICMF, said one of the major reasons for the surge in cotton imports last year was low domestic cotton production.