The Centre is considering the removal of import duty on cotton following sustained demands from the textile industry, which has raised concerns over rising raw material costs and limited domestic availability.
According to sources, discussions between government departments and industry representatives are at an advanced stage, with officials evaluating the possible impact of a duty rollback on farmers, textile manufacturers, and exports. The current import duty on cotton is viewed by industry bodies as a major factor increasing production expenses for spinning mills and garment exporters.
Textile manufacturers have argued that easing import restrictions could help stabilize cotton prices, improve supply, and enhance the global competitiveness of Indian textile products. Industry associations have also pointed to fluctuating domestic cotton output and higher international competition as reasons for seeking immediate policy support.
Government officials, however, are balancing industry demands with the interests of domestic cotton growers, who could face price pressure if cheaper imports enter the market. A final decision is expected after consultations with key stakeholders, sources said.
India’s textile sector, one of the country’s largest employment generators, has been seeking measures to boost exports amid slowing global demand and rising input costs.