Maharashtra govt asks centre to hike import duty on cotton

The Maharashtra government has asked the Centre to increase import duty on cotton from 10 per cent to 50 per cent to arrest the downfall in its prices in the local market, state minister for cooperation Harshwardhan Patil has said.

"This year cotton is likely to be imported from China, which has had a bumper crop. This may affect the local market. With the hike in import duty, we may be able to arrest the fall of prices in the local market," Patil told reporters here yesterday.

Letters requesting for the duty hike have already been sent to the prime minister and agriculture minister, he said. The cotton produce is expected to be 5 per cent more than last year, he said adding, about 180 lakh quintal produce is expected in Maharashtra this year.

Cotton monopoly purchase scheme in Maharashtra would continue even if the state incurs losses this year, Patil said admitting the state is paying as much as Rs 2,500 per quintal price to the best quality cotton.

"The state is likely to suffer direct losses between Rs 1,000 crore to Rs 1,200 crore but in the larger interest of cotton growers, the scheme will continue," Patil added.