Fabric market looks for cotton import task cut as rates rise 25%, output fails
By
ET BureauLast Updated: May 16, 2026, 12:30:00 AM IST
Summary
Indian fabric makers are prompting the federal government to eliminate the 11%import task on raw cotton. Domestic rates have actually risen by 25%in 2 months. Production is likewise anticipated to disappoint preliminary projections. Producers deal with stiff competitors from nations with duty-free cotton imports. This need follows a federal government objective to enhance cotton efficiency and self-sufficiency.
Fabric market looks for cotton import responsibility cut as rates rise 25%, output fails
Pune: The fabric market has actually approached the federal government looking for elimination of the 11 %import task on raw cotton, after domestic costs increased about 25 %in 2 months and price quotes revealed production to fall about 10%except preliminary expectations this crop year.
Indian makers are having a hard time to take on competitors in Vietnam and Bangladesh that take pleasure in duty-free access to cotton imports, market bodies stated. The need comes days after the federal government authorized a 5,659 crore objective targeted at improving cotton efficiency and enhancing India’s self-sufficiency in the fiber.
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“The 11% import duty was levied on cotton when the country was producing 353 lakh (35.3 million) bales of cotton as against the domestic consumption of 320 lakh bales. During the current cotton season, production has dropped to 291 lakh bales as against the domestic demand of 328 lakh bales,” the Southern India Mills Association (SIMA) stated.
According to newest federal government price quote, India’s cotton output in the existing season will likely be 29.2 million bales.
The association has actually composed to different ministries, consisting of commerce, farming and financing, to raise this problem.
Different associations like SIMA, the Tiruppur Exporters’ Association and TEXPROCIL have actually likewise fulfilled commerce minister Piyush Goyal and approached other ministries in the previous 2 weeks.
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“Not only the prices have increased, but we are also facing a shortage of the raw material as raw cotton supply is short by about 40 lakh bales,” stated KM Subramanian, president of the Tiruppur Exporters Association. The Tamil Nadu town represent almost 70% of India’s knitwear exports.
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