The Indian textile industry has requested the removal of the 11% import duty on cotton during the off-season (April–September) to address supply issues and support production.
In March 2025, a delegation from the textile sector, along with Vanathi Srinivasan, Member of the Legislative Assembly from Coimbatore, met Union Finance Minister Nirmala Sitharaman in Coimbatore. A memorandum was submitted seeking exemption from import duty on cotton during the off-season.
Following this, the Ministry of Textiles held a stakeholder meeting and recommended the exemption for the period from April to September.
During a visit by Shivraj Singh Chouhan, Union Minister of Agriculture and Farmers’ Welfare, to Coimbatore on 11th July 2025 for the launch of the “Mission for Cotton Productivity,” the industry repeated its request for duty-free cotton imports.
Responding to repeated requests from the industry, the Ministry of Finance issued a notification on 18th August 2025, exempting all varieties of cotton from import duty, effective from 19th August to 30th September 2025.
Following the notification, the industry delegation led by Vanathi Srinivasan met the Finance Minister in Delhi on 20th August 2025 to convey its thanks.
In a press release, Ravi Sam, Vice Chairman of The Cotton Textiles Export Promotion Council (TEXPROCIL), thanked the Prime Minister for approving the exemption. He urged the Government to extend the exemption to cover Bills of Lading dated up to 30th September, to ensure full benefit for textile mills.
He also noted that the exemption would assist the industry in expanding its market share, especially in the UK, following the recent Free Trade Agreement.
Sam stated that the Finance Minister had acknowledged the challenges posed by U.S. tariffs and said that the Government was considering the industry’s demands, including:
- A two-year moratorium on principal repayments
- A 30% collateral-free loan under ECLGS with 5% interest subvention
- Enhancement of RoDTEP rates and extension of RoSCTL for five years
He added that the measures would help maintain industry operations and protect employment in rural areas.
He also acknowledged the efforts of Vanathi Srinivasan in raising the industry’s concerns with the central government and called for continued support for the sector in Tamil Nadu.
