Apparel Export Promotion Council Chairman Dr A. Sakthivel has urged the central government to reduce cotton import duty from the current 11 percent to zero, citing growing concerns over rising raw material costs and India’s global competitiveness in textile and apparel exports.
During meetings held in New Delhi, Dr Sakthivel and an industry delegation met Piyush Goyal, Shivraj Singh Chouhanand Giriraj Singh to submit representations seeking the immediate removal of cotton import duty.
The delegation highlighted that India’s textile and apparel sector is facing significant pressure due to elevated cotton prices and increasing input costs. Industry leaders said that while India has recently signed multiple free trade agreements, domestic manufacturers are unable to fully capitalize on these opportunities because cotton remains costlier compared to competing export nations.
According to the industry body, major apparel-exporting countries have access to cotton at international market prices, allowing them to offer more competitive pricing to buyers. In contrast, Indian exporters face higher production costs due to the current import duty, impacting their ability to compete globally.
The AEPC delegation emphasized that reducing cotton import duty would help align India’s competitiveness with neighboring textile-producing countries and support stronger export growth. It also noted that lower duties would ensure better raw material availability, boost employment and attract greater investment across the textile value chain.
Industry representatives pointed out a projected cotton shortfall in the 2025–26 season. While the textile industry’s requirement is estimated at around 337 lakh bales, cotton arrivals are expected to reach only 292.15 lakh bales, creating a supply-demand gap of nearly 45 lakh bales. This gap is expected to further increase pressure on spinning mills and downstream textile manufacturers.
The delegation included leaders from key textile associations such as Tiruppur Exporters Association, South India Hosiery Manufacturers Association and other regional industry bodies representing knitwear, hosiery and textile machinery sectors.
The AEPC said timely intervention on cotton import policy is essential to strengthen India’s position in global textile trade and ensure the country can maximize opportunities emerging from new international trade agreements.
