AEPC urges government to scrap 11% import duty on cotton imports

Apparel Export Promotion Council (AEPC) on Wednesday urged the government to remove the 11 per cent import duty on cotton as rising input costs are impacting the textiles industry.

AEPC Chairman A Sakthivel met Commerce and Industry Minister Piyush Goyal, Agriculture Minister Shivraj Singh Chouhan, and Textiles Minister Giriraj Singh, along with a delegation from the apparel industry and submitted representations seeking the duty cut.

They have sought "reduction of import duty on cotton from the existing 11 per cent to 0 per cent", the council said in a statement.

During the discussions, the delegation highlighted challenges being faced by the apparel and textile industry due to high cotton prices and rising input costs, it said.

 

The industry representatives emphasised that India has recently entered into several free trade agreements, creating significant opportunities for growth in textile and apparel exports.

"However, competing apparel exporting nations are able to access cotton at internationally competitive prices, whereas Indian manufacturers continue to face higher raw material costs due to the prevailing import duty structure," the council said.

According to the council, reduction in import duty on cotton is essential to help the apparel industry secure greater business opportunities from FTA partner countries and enhance competitiveness in the global market.

The industry representatives highlighted that neighbouring competing countries enjoy better access to competitively priced raw materials, enabling them to offer more competitive pricing in international markets.

"Reducing the import duty on cotton would help align India's competitiveness with neighbouring countries, ensure adequate raw material availability for the industry and support higher export growth, employment generation and investment across the textile value chain," it added.

The textile industry's cotton requirement for the current year is projected at around 337 lakh bales, while cotton arrivals for the 2025-26 season are estimated at only 292.15 lakh bales, resulting in a supply-demand gap of nearly 45 lakh bales.

The shortfall is expected to increase pressure on spinning mills and downstream textile industries due to rising input costs and limited availability of quality raw material, it added.