Textile industry seeks end to 11% cotton import duty amid supply crunch

On April 28, a senior official in the textiles ministry said the government was considering either reducing or eliminating the customs duty imposed on cotton imports, adding that the concerned ministries would take a final decision.
Textile industry seeks end to 11% cotton import duty amid supply crunch
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A delegation comprising apparel industry representatives and exporters on Thursday met Vice President C. P. Radhakrishnan and urged the government to withdraw the 11 percent import duty on cotton to help the sector cope with mounting cost pressures.

The meeting was held on Wednesday, just hours after the delegation, led by A. Sakthivel, met Commerce and Industry Minister Piyush Goyal, Agriculture Minister Shivraj Singh Chouhan and Textiles Minister Giriraj Singh with the same demand.

The delegation included representatives from key textile and apparel industry bodies in the Tirupur cluster, including the Tiruppur Exporters’ Association (TEA), SIHMA, TTPK, DAT, TEKMA, TEKPA and SIIMKA.

On April 28, a senior official in the textiles ministry said the government was considering either reducing or eliminating the customs duty imposed on cotton imports, adding that the concerned ministries would take a final decision on the matter.

Bipin Menon, Trade Advisor, Ministry of Textiles, said, “We are working with the Department of Revenue to see whether a reduction can happen.”

The delegation pointed out that the textile industry’s cotton requirement for the current year is estimated at around 337 lakh bales, while cotton arrivals for the 2025-26 season are projected at 292.15 lakh bales, leaving a supply gap of nearly 45 lakh bales.

According to the industry representatives, the shortfall has intensified pressure on spinning mills and downstream textile manufacturers due to the limited availability of quality raw material and rising input costs.

The textile industry has been consistently urging the government to remove the 11 per cent customs duty on raw cotton imports amid rising prices, arguing that the move is essential to ease cost pressures on domestic manufacturers and safeguard the sector.

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