The predominantly cotton based textile industry has been pleading for the removal of 11% import duty on cotton, considering the 50-70 lakh bales shortage to be faced by the industry, owing to a crop size of 290 lakh bales as against the industry requirement of 330-340 lakh bales during the current cotton season.
The Government has considered the plea of the industry and given a temporary exemption for the period 1.06.2026 to 31.10.2026. Similar exemption was given during April to October 2022 and August to December 2025. This has given a sigh of relief to the entire cotton textile value chain that has been crippled due to abnormal increase of cotton price during the last 2 months. The cotton price has increased from Rs.54,500/- to Rs.71,000/- per candy of 355 kgs that has started softening in recent days.
In a press release issued here today Mr. Durai Palanisamy, Chairman, SIMA thanked the Hon’ble Prime Minister, Shri Narendra Modi, Hon’ble Union Minister of Finance Smt. Nirmala Sitharaman, Hon’ble Agriculture Minister Shri Shivraj Singh Chouhan, Hon’ble Union Minister of Commerce and Industries Shri Piyush Goyal and Hon’ble Union Minister of Textiles Shri Giriraj Singh for giving this much needed relief to the cotton textile industry. He has said that the relief would enable the exporters to meet their commitments and remain competitive to a certain extent.
SIMA Chairman has also profusely thanked the Hon’ble Chief Minister of Tamil Nadu Thiru C. Joseph Vijay for sending a D.O. Letter recommending removal of 11% import duty on cotton.
Mr. Durai has hoped that the prices would soon match the international price and create a level playing field.
