Suggestion to remove cotton import duty to support textile sector

17-Apr-2025 05:00 PM

Ahmedabad. The Cotton Production and Utilization Committee (CCPC), headed by the Central Textile Commissioner, has recommended that the 11 percent customs duty on cotton imports be removed.

The suggestion was made during an important meeting held in Mumbai on April 16, with representatives from across the cotton industry in attendance.

Industry experts believe that if this recommendation is accepted, it could create challenges for the Cotton Corporation of India (CCI),

which is holding a significant stock of cotton purchased from farmers at the Minimum Support Price (MSP). The arrival of cheaper imported cotton could make it difficult for CCI to sell its existing stock.

A senior advisor from the Tamil Nadu Spinning Mills Association stated that if a full removal of import duty is not feasible, the government should at least consider suspending the duty temporarily.

Any change in the duty structure, however, will require a formal notification from the Union Finance Ministry.

The move is also seen as strategically important for trade relations. Removing or suspending the cotton import duty would signal positively to the US, potentially boosting exports of Indian textile products to American markets.

The committee has also forecasted that domestic cotton production may fall below 300 lakh bales (1 bale = 170 kg) during the current marketing season (2024-25).

The Cotton Association of India echoed this estimate, projecting production to drop to 291.30 lakh bales and cotton imports to rise from 15.20 lakh bales last season to 33 lakh bales this year.