Measures to Encourage Domestic Cotton Production

National Food Security Mission (NFSM)-Commercial Crops (CC) programme, subsuming the Mini Mission-II (MM-II) of Technology Mission on Cotton (TMC), is being implemented (from 2014-2015) in major Cotton growing States, including Maharashtra. Further, the Cotton Corporation of India Ltd. (CCI), as a nodal agency, has been mandated to procure the entire quantity of FAQ grade seed cotton (kapas) offered by cotton farmers in the nominated market yards of various States without any quantitative limit, in the event of prevailing seed cotton (kapas) prices touching the Minimum Support Price (MSP) level. Government is also implementing various schemes like Technology Upgrading Fund Scheme (TUFS), Scheme for Integrated Textile Parks (SITP), Integrated Skill Development Scheme (ISDS) and Scheme for the development of Power-loom Sector, Yarn Supply Scheme for Handloom Sector etc. for improving the competitiveness of textile industry, including cotton.

No fiscal incentive is provided on exports of cotton and cotton yarn as on date. However, these products are entitled to benefits of duty free imports of capital goods and raw materials required for their production and exports. Import of cotton and cotton yarn is permitted freely subject to Basic Custom Duty of 0 % and 10 % respectively.

The information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.