CAI Urges Removal Of 11% Customs Duty On Raw Cotton To Boost Textile Sector
The Cotton Association of India (CAI) has called on the government to remove the 11% customs duty on raw cotton imports to support free trade and strengthen the domestic textile industry. Currently, raw cotton imports are duty-free until December 31, 2025.
Vinay N. Kotak, President of CAI, highlighted that the Indian textile sector is facing significant challenges due to high domestic cotton prices driven by lower productivity and Minimum Support Price (MSP) policies, compounded by uncertainty over US tariffs and weak demand in Europe. He noted that the 11% import duty further inflates costs and distorts prices, putting additional strain on the industry.
“While cotton farmers are already safeguarded through MSP, it is now time to protect the textile sector by ensuring a sustainable and competitive supply of raw materials,” he said. CAI emphasized that duty removal would help India achieve its $100 billion textile export target by 2030.
CAI also projected record cotton imports for the 2025-26 season, estimating around 50 lakh bales of 170 kg each, up from 41 lakh bales last year. Domestic cotton production is expected at 309.5 lakh bales, while domestic consumption is projected at 295 lakh bales.
