Gujarat’s textile industry has welcomed the Centre’s decision to suspend the 11% import duty on cotton till 30th Oct and expected to ease cost pressures across the textile value chain and support profitability amid weak demand conditions.
The textile industry has been facing mounting pressure as cotton prices have surged Rs. 68,500 (US $719) per candy in recent months, putting pressure on spinning mills, fabric manufacturers and garment exporters.
Industry leaders claimed that it will improve the sector’s competitiveness at a time when rising raw material costs and subdued demand have weighed heavily on profitability.
Rahul Shah, co-chair, textile committee, Gujarat Chamber of Commerce and Industry (GCCI) noted that, “Raw cotton prices have corrected by nearly Rs 4,000 (US $42) per candy after the duty waiver announcement. The moderation in cotton and yarn prices is expected to lower input costs for mills and improve operating margins, particularly for export-oriented manufacturers competing with suppliers from Bangladesh, Vietnam and China”.
The spinning sector also welcomed the removal of import duty on cotton, Jayesh Patel, senior vice president, Spinners’ Association Gujarat (SAG), said, “Spinning mills have received good export orders from China and Bangladesh. However, Indian cotton prices were higher compared with the international market, and with the removal of import duty, cotton prices have come down. Cotton yarn prices reached a high of Rs 315 per kg but came down to Rs 290 before the duty cut.We believe that the duty cut will make the Indian textile industry more competitive globally.”
Bharat Tex Special Report 2026 
