Exporters' Demand: Call for Removal of Duty on Cotton Imports
By yash chouhan 2026-04-04 11:25:49
Textile exporters appealed to the government to waive cotton import duty
Pune: Textile and garment exporters have demanded the government to temporarily remove the 11% import duty on cotton. They say the recent rise in domestic prices is squeezing their margins and weakening competition in the international market.
Local cotton prices have increased by 7-8% last month. The main reason for this is the surge in demand, because due to the high prices of crude oil, synthetic fibers have become expensive and mills are again returning to natural fibres.
The industry has sought temporary relief like last year, when the government had reduced supply pressure by removing cotton import duty between August and December. According to Cotton Association of India data, cotton prices have increased by 11-12% in the last one month. During this period, an increase of 12-15% has been recorded in the international market also.
Exporters say India has to depend on imports for long-staple and contamination-free cotton to meet the demand of foreign buyers. About 60-70% of the textile value chain is based on cotton, hence the industry has appealed to the Central Government to provide exemption in import duty for 3 to 6 months.
According to industry experts, global events have led to a surge in crude oil prices, making many raw materials used in the textile sector costlier by 10% to 60%. Besides, the supply chain has also been affected. Exporters say competing countries like Vietnam and Bangladesh get duty-free raw materials, giving them a price advantage.
