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‘Sigh of Relief’ for Textile Sector as Centre Temporarily Removes Cotton Import Duty: SIMA

L. Rajagopal, SimpliCity News Team · 31 May 2026

Coimbatore: The Southern India Mills Association (SIMA) has welcomed the Centre’s decision to temporarily exempt import duty on cotton, describing it as a significant relief for the textile sector.

In a statement, SIMA Chairman Durai Palanisamy said that the predominantly cotton-based textile industry had been urging the government to remove the 11% import duty on cotton, citing an anticipated shortage of 50–70 lakh bales during the current cotton season. He noted that the crop size is estimated at 290 lakh bales, while the industry’s requirement stands at 330–340 lakh bales.

According to him, the government has accepted the industry's request and granted a temporary exemption from import duty on cotton for the period from June 1, 2026, to October 31, 2026. Similar exemptions were provided from April to October 2022 and from August to December 2025.

Palanisamy said the decision has brought a sigh of relief to the entire cotton textile value chain, which has been affected by the sharp rise in cotton prices over the past two months.

He pointed out that cotton prices had increased from ₹54,500 to ₹71,000 per candy (355 kg), though prices have begun to soften in recent days.

Expressing gratitude to the Union Government, he 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 providing the much-needed relief to the cotton textile industry.

Palanisamy said the exemption would help exporters meet their commitments and remain competitive to some extent in the global market.

He also thanked Tamil Nadu Chief Minister C. Joseph Vijay for sending a D.O. letter recommending the removal of the 11% import duty on cotton. He expressed hope that domestic cotton prices would soon align with international prices, creating a level playing field for the industry.

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

‘Sigh of Relief’ for Textile Sector as Centre Temporarily Removes Cotton Import Duty: SIMA

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