Calls to Remove Cotton Import Duty Intensify; Textile Ministry Conducting Study
Coimbatore/New Delhi: The country's textile and apparel industry has intensified pressure on the Central Government to remove the 11% import duty currently levied on raw cotton. Industry associations argue that the limited availability of cotton in the domestic market, coupled with rising prices, is placing increasing cost pressure on spinning mills and downstream textile companies. Consequently, the removal of import duties has become imperative for the industry.
During a recent meeting of the Committee on Cotton Production and Consumption held in Mumbai, representatives of the consumer industry raised this issue prominently. Following this, the Office of the Textile Commissioner submitted a recommendation to the Union Ministry of Textiles proposing that the import duty on cotton be temporarily suspended annually between April and September for the next five years. Currently, this proposal is under the Ministry's consideration, and the government is conducting a study to assess its economic and trade-related implications.
During a stakeholders' meeting held in Coimbatore, industry associations stated that the removal of the duty would provide Indian mills with the opportunity to compete on an equal footing with the global market. They believe that this would ensure the availability of high-quality raw material for the domestic industry at reasonable prices, thereby alleviating the pressure caused by the cotton shortage.
According to industry associations, the textile industry's cotton requirement for the year 2025-26 is estimated to be approximately 337 lakh bales, while the projected availability stands at around 292.15 lakh bales. This could result in a shortfall of approximately 45 lakh bales. The associations assert that if imports are not facilitated in a timely manner, the entire cotton value chain—and by extension, the livelihoods of nearly 35 million people directly associated with it—could be adversely affected.
Meanwhile, an industry delegation led by A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), met with Vice President C.P. Radhakrishnan met with Union Commerce Minister Piyush Goyal, Agriculture Minister Shivraj Singh Chauhan, and Textiles Minister Giriraj Singh, reiterating the demand for the removal of duties. The Tamil Nadu government has also urged the Centre to abolish the import duty on cotton and establish CCI warehouses in the state.
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