Welcoming the Government of India’s decision to temporarily exempt the 11% import duty on cotton from June 1, 2026, to October 31, 2026, Arun Karthik, President, South India Spinners Association (SISPA), said the move would provide immediate relief to the textile industry, particularly spinning mills facing rising raw material costs.
“While the temporary duty exemption is a positive step, recurring short-term measures do not address the structural challenges faced by the cotton and textile value chain. The industry requires a stable and predictable policy framework to ensure long-term competitiveness and sustainability,” he said.
Arun Karthik pointed out that India’s textile industry, especially small and medium spinning mills, continues to be adversely affected by fluctuations in cotton prices arising from variations in domestic production, quality, availability and international market trends.
“Frequent changes in cotton import duty over the years have created uncertainty in the market and contributed to price volatility. Such fluctuations often benefit intermediaries and stockholders, while spinning mills and textile manufacturers bear the actual burden,” he noted.
Highlighting the difficulties faced by MSME spinning mills, he said that unlike large integrated Companies, smaller mills typically purchase cotton only to meet immediate production requirements and do not have the financial resources to maintain large inventories.
“Most MSME spinning mills cater primarily to the domestic market. They are therefore highly vulnerable to sudden increases in cotton prices and are unable to absorb sharp fluctuations in raw material costs,” he added.
Referring to the 2025-26 cotton season, Arun Karthik said cotton prices had increased from around Rs.55,000 per candy to over Rs.65,000-70,000 per candy.
“Many mills were compelled to procure cotton at these elevated prices to sustain operations. Subsequent duty exemptions do not compensate for the losses already incurred, resulting in significant financial stress across the sector,” he said.
Arun Karthik urged the Government of India to formulate a permanent and predictable policy on cotton import duty and introduce a transparent, formula-based mechanism under which import duty is automatically suspended whenever the gap between domestic and international cotton prices exceeds a defined threshold.
He also called for dedicated support measures for small and medium spinning mills, ensuring the availability of Indian cotton at internationally competitive prices and quality standards, and strengthening market transparency through effective intervention by agencies such as the Cotton Corporation of India (CCI).
“The interests of cotton farmers and the textile industry are complementary, not conflicting. Farmers deserve remunerative prices, while textile manufacturers require access to quality raw materials at competitive prices. A balanced approach is essential for the sustainable growth of the entire cotton-textile value chain,” he said.
Appealing for a long-term policy framework, Arun Karthik stated that a permanent solution would not only improve the competitiveness of the Indian textile industry but also provide certainty and confidence to MSME spinning mills, which form the backbone of the sector and support millions of livelihoods.
