Textile Industry Seeks Six-Month Extension Of Duty-Free Cotton Imports
India’s textile industry has urged the government to extend the duty-free import window for raw cotton by another six months beyond October 31, citing a sharp rise in yarn prices and concerns over cotton availability.
The government had waived the 11 percent import duty on raw cotton from June to October 31 to improve domestic availability and help moderate cotton prices. However, cotton prices have risen about 24 percent over the past six months, while cotton yarn prices have increased by around 60 percent in 2026, according to The Economic Times.
“We have requested the central government to extend the duty-free import window of raw cotton by six months as the cotton yarn prices have jumped 60 percent in 2026, adding to the challenges of the apparel exporters,” said K M Subramanian, president, Tiruppur Exporters Association (TEA).
India’s cotton production declined 2.35 percent to 290 lakh bales of 170 kg each in 2025-26. Production has fallen for six consecutive years and has contracted by more than 17 percent from 2021-22 levels.
The rise in yarn prices has increased pressure on garment manufacturers and exporters, with yarn accounting for a significant share of their raw material costs.
“Yarn cost accounts for about 60 percent of the raw material cost of garments. Along with price increases, we are also facing a shortage of yarn availability,” Subramanian said.
The industry has also expressed concerns over the availability of cotton from the new crop season, which begins in October. Lower production and uneven rainfall in key cotton-growing regions could further tighten supplies, industry representatives said.
“The rainfall situation is not good in cotton-producing areas like Vidarbha, Marathwada, Telangana and parts of Gujarat,” said Pradip Jain, president, Khandesh Ginning an
