Cotton duty cut a welcome step, says Chairman of Confederation of Indian Textile Industry

The removal of the 11% import duty on raw cotton until September 30 is a welcome move for the textile industry, but Indian cotton remains costlier than global prices, according to the Confederation of Indian Textile Industry (CITI).“We have been requesting it for over a year now, and I think we are all very happy that this has happened, in spite of the fact that it’s for a short period. But nonetheless, it’s a beginning, and we will continue to initiate and put our efforts into getting it extended,” said CITI Chairman Rakesh Mehra.

The industry has been demanding duty-free cotton imports between March and September so that they do not overlap with the domestic crop season. Mehra said such a step would be “a big boon to the textile value chain and the entire textile industry.”

He, however, acknowledged the challenge of balancing the interests of both farmers and textile players. “It’s not easy… the government has its own compulsions,” he said, noting that the Minimum Support Price (MSP) keeps Indian cotton more expensive than international supplies.Despite India having the largest acreage under cotton, mills often turn to imports from Australia and African countries to access cheaper raw material. “Whoever can import is doing it… and this will continue as long as we are more expensive than international prices,” Mehra said.

Mehra was cautious about India’s $100 billion textile export target for 2030, saying it remains uncertain given the possibility of higher US tariffs and geopolitical risks. He said that if global conditions remain stable and trade negotiations go smoothly, the goal is achievable. For now, textile exports are expected to reach around $45 billion this year.

The industry, meanwhile, is seeking broader support from the government, including higher RoDTEP and RoSCTL rates and interest subvention. With uncertainty around US tariffs—possibly as high as 50%—Mehra said customers have already begun pressing for lower prices. “Our customers have already started asking us for a reduction in prices, saying, ‘Let’s share the impact.’ So, I think August 27 will bring about better visibility on what will happen in the future,” he added.