Textile makers demand zero duty on cotton as prices jump 25% and output misses forecasts

A 11% duty may be backfiring as cotton output drops 10%
Indian textile industry bodies have asked the government to scrap an 11% import duty on raw cotton after domestic prices jumped about 25% in two months. They say this crop year’s cotton output could fall roughly 10% short of initial expectations, with current production estimated at 29.2 million bales versus domestic demand of 328 lakh bales. Manufacturers also argue they’re losing ground to Vietnam and Bangladesh, where cotton imports enter duty-free, while a newly approved ₹5,659 crore cotton productivity mission is underway.
- Textile groups want removal of the 11% duty on raw cotton
- Domestic raw cotton prices rose about 25% in two months
- Production is forecast to be about 10% below earlier expectations
- Current output estimate: 29.2 million bales; demand: 328 lakh bales
- Industry cites raw cotton supply shortfall of about 40 lakh bales
- Rivals in Vietnam and Bangladesh have duty-free cotton import access
This summarization was done by Beige for a story published on
The Economic Times
