Extend 11% cotton import duty exemption: Weavers’ federation secretary

The Centre should extend the 11 per cent import duty exemption on cotton beyond October 31 to ensure the availability of raw material at competitive prices for the textile and garment industries, said Kandavel, secretary of the Tamil Nadu Weavers’ Federation.
With India entering into Free Trade Agreements (FTAs) with several countries, garment export orders are expected to increase as Indian manufacturers gain access to new markets. This is likely to push up demand for cotton.
However, domestic cotton production is estimated to have declined by around 3.4 per cent in the year ended September 2026, increasing the industry’s dependence on imports. India imported around 71 lakh bales of cotton, each weighing 170 kg, during the previous cotton year.
Cotton prices have also been rising.
At the beginning of the new cotton season in October, the price of a candy (approximately 356 kg) increased by ₹4,500 to ₹68,500. Imported cotton prices too rose by around 7 per cent in September.
“The demand for cotton is likely to increase further with the growth in garment exports.
At a time when domestic production is declining and raw material prices are rising, discontinuing the import duty exemption will increase the burden on the textile
industry.
The Centre should extend the 11 per cent exemption beyond October 31,” Mr. Kandavel said.
He said uncertainty over cotton production, including the possibility of an El Niño-related decline in yield, could push prices further upwards.
Garment manufacturers who had accepted export orders at predetermined prices could incur losses if cotton prices continued to rise.