CAI Calls for Removal of Import Duty to Boost Cotton Industry

The Cotton Association of India has urged the government to remove the 11% import duty on raw cotton imports. High domestic prices, resulting from low production and high minimum support price, are affecting the competitiveness of Indian textile goods against countries like Vietnam, Bangladesh, and Pakistan.

The Cotton Association of India (CAI) has called on the Indian government to abolish the 11 percent customs duty on raw cotton imports, warning of negative impacts on the textile industry. Dwindling domestic production and elevated minimum support prices have led to higher costs domestically, hindering competition with international markets.

CAI President Vinay N Kotak outlined the adverse consequences of the import duty, emphasizing the burden on the textile sector and the ripple effect on cotton traders and ginners. He highlighted the risk of losing market share to countries like Vietnam, Bangladesh, and Pakistan if the duty remains.

Despite these challenges, CAI has adjusted its cotton estimate for the 2025-26 season, projecting production of 309.50 lakh bales. November figures show an increase in estimated supply and consumption, though concerns over future competitiveness persist without changes to import policies.

(With inputs from agencies.)