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The Economic Times
The Economic Times

Apparel industry representatives meet Vice President, seek removal of 11 pc import duty on cotton

A delegation comprising apparel industry representatives and exporters on Thursday met Vice President C P Radhakrishnan and sought the removal of 11 per cent import duty on cotton to help the sector mitigate the cost pressure.

The meeting took place on Wednesday, hours after the delegation led by Apparel Export Promotion Council (AEPC) Chairman A Sakthivel met Commerce and Industry Minister Piyush Goyal, Agriculture Minister Shivraj Singh Chouhan and Textiles Minister Giriraj Singh with the same demand.

The delegation included representatives from leading textile and apparel industry associations from the Tirupur cluster, including TEA, SIHMA, TTPK, DAT, TEKMA, TEKPA and SIIMKA.

On April 28, a textile ministry official said the government is looking at the elimination or reduction of the customs duty levied on cotton imports, stressing that concerned ministries will make a decision in this regard.

Bipin Menon, Trade Advisor, Ministry of Textiles, said, "We are working with the Department of Revenue to see whether a reduction can happen."

The delegation argued that the textile industry's cotton requirement for the current year is projected at around 337 lakh bales, whereas cotton arrivals for the 2025-26 season are estimated at 292.15 lakh bales, resulting in a supply-demand gap of nearly 45 lakh bales.

It said this shortage is placing pressure on spinning mills and downstream textile manufacturers due to the limited availability of quality raw material and rising input costs.

The textile industry has been urging the government to remove 11 per cent customs duty on imports of raw cotton amid rising prices to mitigate the cost pressure on domestic companies and protect the sector.

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