The government is in an “advanced stage of consultation” on whether to remove an 11% customs duty applied to imports of raw cotton, according to a senior official. The official says ministries including Finance, Textiles, and Agriculture are deliberating on the levy and that the consultation is expected to be finalised soon.
Representatives from the apparel industry and exporters recently met Vice President C. P. Radhakrishnan and several Union ministers to request duty removal. The industry delegation argues that the move would help ease cost pressures faced by domestic textile companies amid high cotton prices.
The delegation presents estimates that the textile sector’s cotton requirement for the current year is around 337 lakh bales. It also points to projections for cotton arrivals for the 2025–26 season, using these figures to support its case that reducing the duty would help address supply and pricing concerns.
While the government is currently evaluating the request, neither the timing nor the final outcome of the consultations has been officially confirmed beyond expectations of an upcoming decision.
