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SIMA Welcomes Centre's Temporary Cotton Import Duty Exemption to Ease Textile Sector Pressures

L. Rajagopal, SimpliCity News Team · 31 May 2026

Coimbatore: The Southern India Mills' Association (SIMA) has warmly welcomed the Union Government's decision to grant a temporary exemption from import duty on cotton, describing it as a timely and much-needed relief for the textile sector.

SIMA Chairman Durai Palanisamy stated that the predominantly cotton-based textile industry has consistently urged the Centre to remove the 11% import duty on cotton, citing an anticipated shortfall of 50 to 70 lakh bales during the current cotton season. While the domestic cotton crop is estimated at around 290 lakh bales, industry demand is projected to be between 330 and 340 lakh bales.

Recognising the industry's concerns, the Government has announced a temporary exemption from import duty on cotton for the period from June 1, 2026, to October 31, 2026. Similar relief measures were extended during April–October 2022 and August–December 2025.

According to SIMA, the decision has brought significant relief to the entire cotton textile value chain, which has been under considerable strain due to the sharp escalation in cotton prices over the past two months.

Cotton prices surged from approximately ₹54,500 to ₹71,000 per candy (355 kilograms), placing substantial pressure on spinning mills and textile manufacturers. While prices have shown signs of moderation in recent days, the temporary duty exemption is expected to further ease market pressures and improve raw material availability.

Expressing gratitude to the Union Government, Palanisamy thanked Prime Minister Narendra Modi, Union Finance Minister Nirmala Sitharaman, Union Agriculture Minister Shivraj Singh Chouhan, Union Commerce and Industry Minister Piyush Goyal, and Union Textiles Minister Giriraj Singh for responding positively to the industry's long-standing demand and providing crucial support at a critical juncture.

He noted that the measure would help exporters fulfil their international commitments more effectively and enhance the competitiveness of Indian textile products in global markets.

Palanisamy also conveyed SIMA's appreciation to Tamil Nadu Chief Minister C. Joseph Vijay for writing to the Centre and strongly recommending the removal of the 11% import duty on cotton.

He expressed confidence that the exemption would help align domestic cotton prices more closely with international market rates, thereby creating a more level playing field for Indian textile manufacturers and strengthening the sector's overall competitiveness.

SIMA cotton import duty textile industry Coimbatore Durai Palanisamy spinning mills export Narendra Modi C Joseph Vijay

SIMA Welcomes Centre's Temporary Cotton Import Duty Exemption to Ease Textile Sector Pressures

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