‘Remove import duty on cotton’

COIMBATORE: A study released by the Confederation of Indian Textile Industry (CITI) has sought the complete removal of import duty on cotton. The study, titled “Economic Analysis of Cotton Supply, Pricing and Trade Policy in India,” flags the adverse impact of the 11% import duty on cotton. It highlights the need to ensure predictable access to imported cotton during supply gaps to maintain the long-term competitiveness of India's textile and apparel sector."The import duty on cotton was temporarily waived from August to December 2025. It was reinstated on Jan 1, 2026. Since its implementation in 2021, it has twice been waived temporarily. Industries demand a complete removal of the duty because our competitors like Sri Lanka, Bangladesh, Vietnam and Pakistan do not have such restrictions," says the study jointly prepared by Gherzi and the International Cotton Advisory Committee (ICAC).The study suggests creating a strategic reserve for cotton similar to the one in China that was established long ago. It states that textile and apparel exports have declined 2.2% in dollar terms year-on-year to $35.79 billion in FY26.“The Gherzi-ICAC report presents a detailed and implementable roadmap for stakeholders to realise the ambitious $350 billion target for the textile and apparel industry by 2030,” said CITI chairman Ashwin Chandran during a media briefing here on Thursday.Southern India Mills' Association (SIMA) secretary general Dr K Selvaraju told reporters that cotton cultivation had declined by 20% in the last three years. India has the lowest yields, according to him. "To achieve the 2030 target, there must be a 15% year-on-year growth for which these recommendations are required. But if the current situation continues, then achieving it is not possible. The West Asia war has also led to an increase in the freight and logistics cost, gas shortage, price hike of oil-based raw materials and price hike in dye and chemicals, all of which have impacted the textile and Apparel industry," he said.