A delegation representing India’s textile and apparel industry met the Union Minister of Agriculture and Farmers’ Welfare, Shivraj Singh Chouhan, in New Delhi to seek government intervention for the permanent removal of import duty on cotton across all varieties. The delegation was led by the Confederation of Indian Textile Industry (CITI), representing a broad cross-section of leading stakeholders from the sector.
During the meeting, the delegation conveyed industry concerns over the reinstatement of the cotton import duty from 1st January 2026 and its potential adverse impact on the competitiveness of India’s textile and apparel sector. The Minister assured the representatives that their submissions would be carefully examined as part of the government’s ongoing review process.
In its representation, the industry highlighted that domestic cotton production has been on a steady decline and is projected to fall this year to its lowest level in nearly two decades, intensifying apprehensions over supply shortages. The reimposition of import duty, it was stated, would further exacerbate cost pressures for textile and apparel manufacturers.
The delegation noted that over the past decade, average cotton imports have stood at around 20 lakh bales, accounting for approximately 6.8% of India’s average domestic production. These imports, it was explained, are largely driven by quality and specification requirements, particularly for specialised cotton used in high-value products and back-to-back export orders, and therefore do not displace domestic cotton.
It was further pointed out that although India is among the world’s largest cotton producers, the availability of contamination-free and specialised cotton required for export-oriented and value-added textiles remains limited, making selective imports unavoidable. The industry also observed that following the imposition of import duty, domestic cotton prices have consistently traded at a premium to international benchmarks based on import price parity. This, it said, has raised raw material costs for spinners and manufacturers, eroding competitiveness across the textile value chain.
The delegation drew attention to the fact that major competing textile-exporting nations such as Bangladesh and Vietnam allow duty-free access to cotton, giving them a structural cost advantage in global markets.
Industry representatives reiterated their support for the government’s objective of safeguarding farmers’ interests, noting that these are already effectively protected through the Minimum Support Price (MSP) mechanism. The MSP for cotton has been increased by around 8% in the current season and is presently above prevailing market prices, providing a robust safety net for farmers even as the industry faces rising input costs and challenging external trade conditions.
The textile and apparel sector, one of India’s largest generators of employment and livelihoods, is also contending with the impact of a 50% tariff imposed by the United States with effect from 27th August 2025. Cotton-based products dominate India’s textile exports, including shipments to the US, which remains the country’s single-largest market, accounting for nearly 28% of total textile and apparel export revenues. Exports to the US were valued at close to $11 billion in the 2024–25 financial year.
