Apparel Leaders Push for Cotton Duty Removal Amid Cost Concerns

Apparel sector representatives met Vice President Radhakrishnan, requesting the removal of an 11% import duty on cotton. With projected supply shortages, the industry faces increasing cost pressures. Government officials are considering the situation. The delegation's meetings with several ministers focus on addressing this critical issue.

Apparel industry leaders met Vice President C P Radhakrishnan on Thursday to advocate for the elimination of the 11% import duty on cotton. Their goal is to alleviate mounting cost pressures faced by the sector. The meeting came just a day after discussions with Commerce and Industry Minister Piyush Goyal, Agriculture Minister Shivraj Singh Chouhan, and Textiles Minister Giriraj Singh.

The delegation included representatives from top textile groups in the Tirupur region, such as TEA, SIHMA, TTPK, DAT, TEKMA, TEKPA, and SIIMKA. On April 28, a Ministry of Textiles official mentioned that the government is deliberating on either reducing or removing the customs duty for cotton imports, with relevant ministries soon making a decision.

Bipin Menon, Trade Advisor in the Ministry of Textiles, acknowledged ongoing discussions with the Department of Revenue to see if a reduction could be implemented. The delegation highlighted the textile industry's forecasted need of 337 lakh bales this year, against an anticipated arrival of 292.15 lakh bales for the 2025-26 season. This shortfall places significant strain on both spinning mills and textile manufacturers due to soaring input costs and limited raw material availability.