Remove Cotton Import Duty, CAI Urges Govt

Mumbai, Dec 9 (PTI) Cotton Association of India (CAI) on Tuesday urged the government to remove 11 per cent Customs duty on imports of raw cotton, as lower production is resulting in high domestic prices, affecting the textile industry.

Current market challenges, driven by lower domestic productivity and high MSP (minimum support price), have made Indian cotton costly compared to other competing countries, CAI said in a statement.

"The 11 per cent import duty levied on cotton imports in India not only distorts the prices but also compounds the misery of our textile industry. The significant health issues now being faced by our textile industry also percolate to cotton traders and ginners immediately. The Indian cotton traders and ginners are the unsecured creditors of this industry," CAI president Vinay N Kotak said.

If 11 per cent import duty is not removed, Indian textile goods will not be competitive, and buyers will shift to Vietnam, Bangladesh, Pakistan and other markets, he added.

"This can lead to long-term damage and loss of India's share in the world cotton textile market," Kotak said.

Meanwhile, CAI has increased its cotton estimate by 4.50 lakh bales to 309.50 lakh bales for the 2025-26 season.

The total supply for November is estimated at 148.37 lakh bales, which consists of the cotton pressing of 69.78 lakh bales, imports of 18 lakh bales and the opening stock estimated by the CAI at 60.59 lakh bales at the beginning of the season.

Further, the association has estimated cotton consumption for November at 48.40 lakh bales, while the export shipments up to November 30, 2025, are estimated at 3 lakh bales.

Stock at the end of November is estimated at 96.97 lakh bales, including 50 lakh bales with textile mills, and the remaining 46.97 lakh bales with CCI, Maharashtra Federation and others (MNCs, traders, ginners, exporters, among others), including cotton sold but not delivered.