Industry Updates

AEPC Urges Government to Remove Cotton Import Duty

Published: 14/05/2026
Author: Fashion Value Chain

Dr A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), met Shri Piyush Goyal, Hon’ble Union Minister of Commerce and Industry, Shri Shivraj Singh Chouhan, Hon’ble Union Minister of Agriculture and Farmers Welfare, and Shri Giriraj Singh, Hon’ble Union Minister of Textiles, along with a delegation from the apparel industry to seek reduction of cotton import duty from the existing 11 per cent to 0 per cent.

During the discussions, the delegation highlighted concerns regarding high cotton prices and increasing input costs affecting India’s textile and apparel sector. Industry representatives stated that while India has recently signed multiple Free Trade Agreements, domestic manufacturers continue to face disadvantages due to higher raw material costs compared to competing apparel-exporting countries.

The delegation emphasised that access to internationally competitive cotton prices is critical for improving India’s global competitiveness, especially in FTA partner markets where pricing pressure remains high. According to the industry, neighbouring competing nations benefit from easier access to lower-cost raw materials, enabling them to offer more competitive export pricing.

Industry representatives also stressed that reducing cotton import duty would improve raw material availability, strengthen export growth, support employment generation, and encourage investment across the textile and apparel value chain.

The delegation pointed out that the textile industry’s cotton requirement for the current year is estimated at approximately 337 lakh bales, while cotton arrivals for the 2025–26 season are projected at only 292.15 lakh bales. This is expected to create a supply-demand gap of nearly 45 lakh bales, increasing pressure on spinning mills and downstream textile sectors due to limited availability and rising costs.

The delegation accompanying the AEPC Chairman included Shri K M Subramaniam, President, TEA; Shri Shanmugasundaram P, President, SIHMA; Shri Dhamodharan R, Secretary, SIHMA; Shri Mohanasundaram K, Trustee, TTPK; Shri Sudhakar K, Joint Secretary, DAT; Shri Krishnan P, President, TEKMA; Shri Srikanth T R, President, TEKPA; and Shri Vivekanand N, President, SIIMKA.

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