Textile Sector Urges Six-Month Extension of Cotton Import Duty Waiver

India’s textile industry has urged the central government to extend the duty-free import window for raw cotton by another six months beyond October 31, citing rising cotton and yarn prices and concerns over adequate supply for the textile and apparel sector.

The government had removed the 11% import duty on raw cotton from June 1 to October 31 to improve cotton availability and help the domestic textile industry access the fibre at competitive prices. However, cotton prices have risen by around 20% in 2026, while cotton yarn prices have increased at a significantly faster pace.

KM Subramanian, President, Tiruppur Exporters Association (TEA). stated that “we have requested the central government to extend the duty-free import window of raw cotton by six months as the cotton yarn prices have jumped 60% in 2026, adding to the challenges of the apparel exporters”

Cotton prices have increased by around 24% over the past six months, while India’s cotton production declined by 2.35% to 290 lakh bales of 170 kg each in 2025-26. Domestic cotton production has been falling for the past six years and has contracted by more than 17% since 2021-22.

The industry has also raised concerns over yarn availability. “Yarn cost accounts for about 60% of the raw material cost of garments. Along with price increases, we are also facing a shortage of yarn availability,” Subramanian said

At the same time, cotton farmers have expressed concerns about extending duty-free imports into the October-November harvest period. They fear that increased availability of imported cotton could put downward pressure on domestic cotton prices just as the new crop begins arriving from the October harvest.

The outlook for the current cotton season has also raised concerns among industry participants. “The rainfall situation is not good in cotton-producing areas like Vidarbha, Marathwada, Telangana and parts of Gujarat,” said Pradip Jain, President, Khandesh Ginning and Pressing Association.ndia’s textile industry has urged the central government to extend the duty-free import window for raw cotton by another six months beyond October 31, citing rising cotton and yarn prices and concerns over adequate supply for the textile and apparel sector.

The government had removed the 11% import duty on raw cotton from June 1 to October 31 to improve cotton availability and help the domestic textile industry access the fibre at competitive prices. However, cotton prices have risen by around 20% in 2026, while cotton yarn prices have increased at a significantly faster pace.

KM Subramanian, President, Tiruppur Exporters Association (TEA). stated that “we have requested the central government to extend the duty-free import window of raw cotton by six months as the cotton yarn prices have jumped 60% in 2026, adding to the challenges of the apparel exporters”

Cotton prices have increased by around 24% over the past six months, while India’s cotton production declined by 2.35% to 290 lakh bales of 170 kg each in 2025-26. Domestic cotton production has been falling for the past six years and has contracted by more than 17% since 2021-22.

The industry has also raised concerns over yarn availability. “Yarn cost accounts for about 60% of the raw material cost of garments. Along with price increases, we are also facing a shortage of yarn availability,” Subramanian said

At the same time, cotton farmers have expressed concerns about extending duty-free imports into the October-November harvest period. They fear that increased availability of imported cotton could put downward pressure on domestic cotton prices just as the new crop begins arriving from the October harvest.

The outlook for the current cotton season has also raised concerns among industry participants. “The rainfall situation is not good in cotton-producing areas like Vidarbha, Marathwada, Telangana and parts of Gujarat,” said Pradip Jain, President, Khandesh Ginning and Pressing Association.