CITI Urges Government to Remove Cotton Import Duty Permanently

The Confederation of Indian Textile Industry (CITI) is urging the government to permanently eliminate the 11% cotton import duty to reduce costs for domestic companies. Current government exemptions are set to expire at the end of 2025, posing a competitive threat to India's textile sector.

The Confederation of Indian Textile Industry (CITI) has called on the government to permanently abolish the 11% import duty on cotton, arguing that such a move would alleviate financial stress on domestic textile companies.

CITI representatives recently met with Union Agriculture Minister Shivraj Singh Chouhan to advocate for the removal of the import duty, which is currently exempt until December 31, 2025. Industry leaders fear that reinstating the duty in 2026 could weaken the competitiveness of India's textile and apparel industry.

Challenges abound as CITI warns of a declining trend in domestic cotton production, potentially exacerbating supply shortages. Other countries like Bangladesh and Vietnam, which offer duty-free cotton imports, gain a competitive edge, raising stakes for urgent government intervention.

(With inputs from agencies.)