Textile Industry Seeks Duty-Free Cotton Imports Amid Price Surge
By jayesh chouhan 2026-04-24 15:59:12
Cotton Price Surge: Textile Industry Demands Duty-Free Imports
Textile Industry Seeks Duty-Free Cotton Imports Amid Price Surge
India’s textile industry has urged the government to remove the 11% import duty on cotton as domestic prices continue to rise in line with global trends. Industry stakeholders believe that allowing duty-free imports is crucial to maintaining export competitiveness and stabilising the textile value chain.
Cotton prices have increased sharply in recent weeks, putting pressure on the entire ecosystem, from spinning mills to garment exporters.(sis) Exporters, especially those operating under long-term contracts, are facing margin erosion as they have limited ability to pass on rising input costs.
K. Selvaraju, Secretary General of the Southern India Mills Association (SIMA), stated that the steep rise in cotton prices is impacting all segments, with garment manufacturers being the most vulnerable due to their dependence on fabric inputs.(sis)
The situation is further complicated by weak global demand, particularly due to geopolitical tensions in West Asia. While yarn exports have remained relatively stable, the broader textile export sector continues to face challenges.
India’s cotton production is estimated at 290 lakh bales, falling short of the domestic demand of around 330 lakh bales. To bridge this gap, the industry has proposed duty-free imports from May to October, covering the lean supply period.(sis)
Stakeholders maintain that this move will not harm farmers, as most cotton stocks are sold by March. With supply constraints and price volatility rising, the industry is calling for immediate government intervention to prevent further disruption.
