Government in Advanced Talks on Removing Cotton Import Duty
By jayesh chouhan 2026-05-25 12:04:39
Cotton Import Duty Removal: Government Consultation
New Delhi, (PTI) A senior official said the government is in an "advanced stage of consultation" regarding the 11 percent customs duty on raw cotton imports and is considering whether the levy can be lifted, and a decision is expected soon.
Several ministries, including Finance, Textiles, and Agriculture, are considering the duty, with the textile industry demanding its removal to ease cost pressures on domestic companies due to high prices.
"We are talking to both Finance and Agriculture (both ministries), and it is in an advanced stage of consultation. We hope the consultation will be finalized soon," the official told PTI.
A delegation comprising apparel industry representatives and exporters recently met Vice President CP Radhakrishnan and several Union ministers and demanded the duty be lifted. The delegation said that the textile industry requires approximately 337 lakh bales of cotton this year, while cotton arrivals are estimated to be 292.15 lakh bales in the 2025-26 season, leading to a supply-demand gap of approximately 45 lakh bales.
They said this shortage is putting pressure on spinning mills and downstream textile manufacturers due to the low availability of good quality raw materials and rising input costs.
