Tamil Nadu's textile industry representatives have urged the Central Government to immediately cancel the 11% import duty on cotton until September 30, citing severe stress due to rising cotton prices. They assert farmers won't be affected as Cotton Corporation of India and traders have already procured cotton from them at good prices.
Coimbatore: The Tamil Nadu textile industry has urged the Central Government to scrap the 11 percent import duty on cotton until September 30, stating that farmers will not be affected by this move as the Cotton Corporation of India and traders have already procured cotton from them in large quantities.
The industry representatives have pointed out that the continuous rise in cotton prices has pushed the Tamil Nadu textile sector into a severe crisis. Since the Cotton Corporation of India and traders have already purchased cotton from farmers in substantial volumes, there will be no adverse impact on farmers if the import duty is removed.
Ravi Sam, former President of the Southern India Mills Association (SIMA), said that farmers have already received good prices due to the high Minimum Support Price (MSP) for cotton. This has encouraged farmers who previously cultivated other food grains to show interest in cotton cultivation. Global instability caused by wars and various other factors has created immense pressure on all enterprises in the entire textile supply chain.
Since the Cotton Corporation of India and traders have procured cotton from farmers, there will be no impact on them. Therefore, considering the growth of the Indian textile industry, the Central Government should take action to cancel the 11 percent duty on cotton imported from foreign countries from April 15 to September 30, he stated.
Jagadish Chandran, Honorary Secretary of the South India Spinners Association (SISPA), said that between March 1 and April 6, 2026, the price of one candy (356 kg) of cotton has increased from Rs 52,000 to Rs 63,000. The price per kilogram has risen by Rs 31.
International market changes, crude oil price increases, transportation costs, and rising prices of other raw materials are the main reasons. From January to March 2026, spinning mills have purchased 18 lakh bales (1 bale equals 170 kg) of cotton. Traders have purchased 32.5 lakh bales of cotton. Such activity has created additional pressure.
Therefore, the Cotton Corporation of India should provide quality cotton at reasonable prices only to spinning mills without discrimination, and should not sell cotton to cotton traders and intermediaries. Similarly, the Central Government should undertake strict monitoring to prevent traders from bulk purchasing cotton in the name of spinning mills.
The 11 percent import duty on cotton should be immediately cancelled. Furthermore, the Central and State Governments should jointly take action to control the price rise of raw materials and reduce electricity tariffs, he added.
The industry representatives have pointed out that the continuous rise in cotton prices has pushed the Tamil Nadu textile sector into a severe crisis. Since the Cotton Corporation of India and traders have already purchased cotton from farmers in substantial volumes, there will be no adverse impact on farmers if the import duty is removed.
Ravi Sam, former President of the Southern India Mills Association (SIMA), said that farmers have already received good prices due to the high Minimum Support Price (MSP) for cotton. This has encouraged farmers who previously cultivated other food grains to show interest in cotton cultivation. Global instability caused by wars and various other factors has created immense pressure on all enterprises in the entire textile supply chain.
Since the Cotton Corporation of India and traders have procured cotton from farmers, there will be no impact on them. Therefore, considering the growth of the Indian textile industry, the Central Government should take action to cancel the 11 percent duty on cotton imported from foreign countries from April 15 to September 30, he stated.
Jagadish Chandran, Honorary Secretary of the South India Spinners Association (SISPA), said that between March 1 and April 6, 2026, the price of one candy (356 kg) of cotton has increased from Rs 52,000 to Rs 63,000. The price per kilogram has risen by Rs 31.
International market changes, crude oil price increases, transportation costs, and rising prices of other raw materials are the main reasons. From January to March 2026, spinning mills have purchased 18 lakh bales (1 bale equals 170 kg) of cotton. Traders have purchased 32.5 lakh bales of cotton. Such activity has created additional pressure.
Therefore, the Cotton Corporation of India should provide quality cotton at reasonable prices only to spinning mills without discrimination, and should not sell cotton to cotton traders and intermediaries. Similarly, the Central Government should undertake strict monitoring to prevent traders from bulk purchasing cotton in the name of spinning mills.
The 11 percent import duty on cotton should be immediately cancelled. Furthermore, the Central and State Governments should jointly take action to control the price rise of raw materials and reduce electricity tariffs, he added.