Business & Policy

AEPC Seeks Removal of Cotton Import Duty

Published: 15/05/2026
Author: Fashion Value Chain

A delegation led by Dr A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), met the Hon’ble Vice President of India, Shri C. P. Radhakrishnan, and submitted a representation requesting the removal of the existing 11 per cent import duty on cotton to improve the global competitiveness of India’s apparel and textile industry.

During the meeting, the delegation emphasised that India’s apparel and textile sector is entering a significant growth phase following the signing of multiple Free Trade Agreements (FTAs), which are expected to create major export opportunities across global markets. The industry representatives stated that removing the cotton import duty would help Indian exporters compete more effectively with neighbouring countries that have access to raw materials at internationally competitive prices.

The delegation highlighted that increasing global demand for apparel presents strong opportunities for India. However, higher raw material costs caused by the current duty structure could impact the sector’s competitiveness. Industry representatives noted that rationalising cotton import duty would strengthen supply chain efficiency, support exporters in securing larger international orders, and help attract more sourcing business from FTA partner countries.

The delegation also pointed out that the textile industry’s cotton requirement for the current year is projected at approximately 337 lakh bales, while estimated cotton arrivals for the 2025-26 season stand at 292.15 lakh bales, creating a supply-demand gap of nearly 45 lakh bales. According to the industry, the shortage is increasing pressure on spinning mills and downstream textile manufacturers due to rising input costs and limited availability of quality raw material.

Dr A. Sakthivel highlighted that the apparel and textile industry remains one of the country’s largest employment generators and plays a vital role in export growth and foreign exchange earnings. He urged that timely policy intervention through the removal of cotton import duty would enable the industry to capitalise on emerging global opportunities and strengthen India’s position as a competitive sourcing destination.

The delegation also included representatives from leading textile and apparel industry associations from the Tirupur cluster, including TEA, SIHMA, TTPK, DAT, TEKMA, TEKPA and SIIMKA.

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