AEPC Seeks Zero Duty On Cotton Imports
The Apparel Export Promotion Council has urged the central government to reduce import duty on cotton to zero from the current 11 percent, warning that rising raw material costs and tightening domestic supplies are impacting the competitiveness of India’s textile and apparel sector.
AEPC Chairman A. Sakthivel led a delegation of industry representatives that met Union Ministers Piyush Goyal, Shivraj Singh Chouhan and Giriraj Singh to seek immediate intervention on the issue.
The industry body said high domestic cotton prices are significantly increasing input costs for spinning mills, textile manufacturers and garment exporters at a time when India is preparing to benefit from newly signed free trade agreements with major global markets.
According to AEPC, competing apparel-exporting nations are able to source cotton at international prices, while Indian manufacturers continue to face higher costs due to import duties on cotton. The council said removing the duty would help align domestic raw material prices with global benchmarks, improve export competitiveness and support employment generation across the textile value chain.
The delegation also highlighted concerns over a widening cotton supply-demand gap in the country. Domestic cotton requirement for the current year is estimated at around 337 lakh bales, while arrivals for the 2025–26 season are projected at nearly 292.15 lakh bales, leaving an estimated shortfall of about 45 lakh bales.
Industry representatives warned that the supply deficit could further increase pressure on spinning mills and downstream textile units, affecting production planning and export orders.
AEPC said rationalising cotton import duty is critical for India to fully leverage opportunities emerging from recent trade agreements and strengthen its position in the global apparel export market.
