Relief for Gujarat's Textile Sector from Cotton Import Duty Waiver
Ahmedabad: Gujarat's textile industry has welcomed the Central Government's decision to suspend the 11% import duty on cotton until October 30. Industry stakeholders believe this move will reduce raw material costs and enhance the competitiveness of Indian textile products in the global market.
In recent months, domestic cotton prices had surged to ₹68,500 per candy, driving up costs for spinning mills, fabric manufacturers, and garment exporters. The industry states that the duty waiver will improve cotton availability and help keep prices in check.
Chintan Thaker, Chairman of the ASSOCHAM Gujarat State Council, noted that imports are primarily limited to Extra-Long Staple (ELS) cotton, which is not a substitute for Indian cotton. According to him, this decision will help reduce production costs for textile manufacturers and exporters. Furthermore, the availability of superior quality fiber will improve product quality and make it easier to meet the requirements of global brands.
Rahul Shah, Co-Chairman of the Textile Committee at the Gujarat Chamber of Commerce and Industry (GCCI), stated that raw cotton prices have dropped by approximately ₹4,000 per candy following the announcement of the duty waiver. This will lower input costs for mills and improve operating margins, particularly for export-oriented companies.
Jayesh Patel, Senior Vice President of the Spinners Association Gujarat (SAG), mentioned that while Indian spinning mills are receiving strong export orders from China and Bangladesh, high domestic cotton prices had posed a challenge. He believes the import duty waiver will ease pressure on cotton and yarn prices, enabling the Indian textile industry to become more competitive globally.
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