Textile industry hails Centre’s move, calls it timely relief
New Delhi, May 30: The government on Saturday announced a temporary exemption on all customs duties on the import of cotton from June 1 till October 30, to augment its availability for the Indian textile sector amid geopolitical tensions.
The temporary duty exemption is expected to reduce input costs across the textile and apparel sector, thereby providing targeted relief to manufacturers and consumers, while also keeping the interests of domestic farmers in mind, according to an official notification.
The measure is anticipated to have a positive impact on the performance of the domestic textile industry, especially the small and medium enterprises, ensuring better availability of cotton in the market.
Earlier this month, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved an outlay of Rs 5,659.22 crore for the Mission for Cotton Productivity (2026–27 to 2030–31) aimed at addressing bottlenecks, declining growth, and quality concerns in India’s cotton sector.
The mission aligns with the government’s 5F vision (Farm to Fibre to Factory to Fashion to Foreign). It focuses on enhancing cotton productivity through the development of high-yielding variety (HYV) seeds resistant to disease and pests, scaling up of existing and latest crop production technologies through state governments, Krishi Vigyan Kendras, and State Agricultural Universities (SAUs) through large-scale promotion and adoption of latest crop production technologies, ensuring a least-contaminant cotton supply to industry, and promoting high-quality cotton exports.
The major focus of the mission is on the development of high-yielding, climate-resilient, pest-resistant seeds and other production technologies, upscaling improved cotton production technologies like High Density Planting System (HDPS), Closer Spacing (CS), Integrated Cotton Management, and promotion of Extra Long Staple (ELS) Cotton.
It also works on augmenting the quality of cotton through capacity building and promoting modernisation of ginning and processing factories, including the adoption of best processing practices and strengthening cotton testing infrastructure across the country with modern, standardised, and accredited facilities to ensure reliable quality assessment and global benchmarking.
The mission envisages accomplishing the production of 498 lakh bales (170 kg lint each) of cotton by enhancing lint productivity from 440 kg/ha to 755 kg/ha by 2031. Approximately 32 lakh farmers will benefit, leading to self-reliance.
Meanwhile, the government’s decision to temporarily exempt all customs duties on cotton imports will improve raw material availability and ease pressure on the textile and apparel value chain, the industry said on Saturday.
Welcoming the government’s move, the Apparel Export Promotion Council (Apparel Export Promotion Council) said the measure is expected to reduce input costs, improve cotton availability, and enhance the competitiveness of Indian textile and apparel exports, particularly benefiting small and medium enterprises facing volatility in cotton and yarn prices.
AEPC Chairman Dr A. Sakthivel expressed gratitude to Prime Minister Narendra Modi, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman, Union Minister of Commerce and Industry Piyush Goyal, Union Minister for Agriculture & Farmers Welfare and Rural Development Shivraj Singh Chouhan and Union Minister of Textiles Giriraj Singh for what he described as a timely intervention in support of the sector.
He also conveyed special thanks to Minister of State for Information and Broadcasting and Parliamentary Affairs Dr L. Murugan for his support and coordination in addressing industry concerns.
Dr Sakthivel said the temporary duty exemption is expected to moderate domestic cotton prices and strengthen the textile value chain.
In addition, he urged spinning mills to pass on the benefit of lower raw material costs by rationalising yarn prices, adding that this would help exporters secure and execute orders more competitively.
He further noted that AEPC had been consistently raising the issue with the government through a series of representations and meetings and said the decision reflects the government’s commitment to supporting export-oriented manufacturing and strengthening India’s position as a global sourcing destination. (IANS)
