The government is in an advanced stage of consultation and examining if the 11% duty on imports of raw cotton can be removed, with a decision expected soon.
“Various union ministries which include textiles, agriculture and finance are in consultations on the removing the cotton levy,” a senior official told PTI.
Various textile trade associations including the chief minister of Tamil Nadu have sought removal of the import duty.
A delegation comprising apparel industry representatives and exporters met Vice President C P Radhakrishnan and several Union ministers recently and sought the removal of the duty.
The delegation argued that the textile industry’s cotton requirement for the current year is projected at around 337 lakh bales, whereas cotton arrivals for the 2025-26 season are estimated at 292.15 lakh bales, resulting in a supply-demand gap of nearly 45 lakh bales.
It said this shortage is putting pressure on spinning mills and downstream textile manufacturers due to the limited availability of high-quality raw materials and rising input costs.
Image courtesy: Grain Central
