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Government may remove 11% customs duty on raw cotton imports
24 May 2026

The Indian government is considering the removal of an 11% customs duty on raw cotton imports.

The move comes as part of efforts to ease cost pressures on the domestic textile industry, which has been facing challenges due to a supply-demand gap for cotton.

A decision on this matter is expected soon, a senior official told PTI.

Consultation in advanced stages
Ongoing discussions

The Finance, Textiles, and Agriculture ministries are all part of the ongoing discussions about the duty.

The textile industry has been pushing for its removal to ease cost pressures on domestic companies due to high prices.

"We are talking to Finance and Agriculture [ministries], both, and it is in an advanced stage of consultation. We hope that the consultation will be finalized in the near future," the official told PTI.

Delegation met top leaders to highlight issues
Delegation meeting

A delegation of apparel industry representatives and exporters recently met Vice President C.P. Radhakrishnan and several Union Ministers to press for the removal of the duty.

They argued that the textile industry's cotton requirement for this year is about 337 lakh bales, while cotton arrivals for the 2025-26 season are estimated at 292.15 lakh bales, creating a supply-demand gap of nearly 45 lakh bales.

Textile industry facing challenges
Market impact

The delegation stressed that this supply-demand gap is putting pressure on spinning mills and downstream textile manufacturers.

They are facing a shortage of high-quality raw materials and rising input costs, which are affecting their operations.

The government's deliberations on the matter come amid these challenges in the domestic textile industry.