India extends exemption on cotton to protect against U.S. tariffs

The Government of India extended this Thursday the exemption of tariffs on the import of cotton until December 31, in a move to protect its vital textile industry, which has been hit by Washington's punitive 50% tariff. The Government stated that the decision was made "to increase the availability of cotton for the Indian textile sector and to further support exporters," according to an official notification. According to the Cotton Association of India (CAI), the industry faced domestic cotton prices up to 12% higher than those on the world market. This is in addition to the tariff imposed by Washington, which has caused mass cancellations of orders from major retailers such as Walmart and Target. The Confederation of Indian Textile Industry (CITI) welcomed the measure as a timely relief, however, the decision has been labeled a "death sentence for cotton farmers" by the farmers' union Samyukt Kisan Morcha (SKM). According to the SKM, the extension until December will flood the ...