India’s textile industry has sought the removal of import duty on cotton, citing rising raw material prices and concerns over the competitiveness of textile exports in global markets.
Industry stakeholders have urged the Centre to allow duty-free cotton imports to ensure adequate availability of quality raw material at competitive rates, particularly as domestic cotton prices remain elevated compared to international benchmarks.
According to industry representatives, the current import duty structure increases input costs for spinning mills and textile manufacturers, affecting margins and export competitiveness. They warned that higher cotton prices could impact production planning and reduce India’s ability to compete with textile-exporting nations such as Bangladesh and Vietnam, which have access to cheaper imported cotton.
The industry has also highlighted concerns over fluctuating domestic cotton arrivals and supply constraints, stressing that easier imports would help stabilise prices and support downstream sectors including yarn, fabric, garments and home textiles.
Textile associations have reportedly requested the government to review the duty framework ahead of the upcoming cotton procurement and export season, arguing that lower input costs would support employment and boost textile exports.