The government’s decision to temporarily exempt all customs duties on cotton imports has been welcomed by the industry. The move is expected to enhance raw material availability and alleviate pressure on the textile and apparel value chain. This measure is anticipated to reduce input costs, improve cotton availability, and boost the competitiveness of Indian textile and apparel exports, especially benefiting small and medium enterprises facing price volatility in cotton and yarn.
The Apparel Export Promotion Council (AEPC) Chairman, Dr. A. Sakthivel, expressed gratitude to several government officials for this timely intervention. He thanked Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, Agriculture & Farmers Welfare Minister Shivraj Singh Chouhan, Textiles Minister Giriraj Singh, and Minister of State for Information and Broadcasting Dr. L. Murugan for their support.
Dr. Sakthivel highlighted that the temporary duty exemption is expected to stabilize domestic cotton prices and strengthen the textile value chain. He urged spinning mills to pass on the benefits of lower raw material costs by adjusting yarn prices, which would enable exporters to secure and fulfill orders more competitively. AEPC has consistently raised this issue with the government, emphasizing the importance of supporting export-oriented manufacturing and enhancing India’s global sourcing position.
The temporary exemption on all customs duties for cotton imports from June 1 to October 30 aims to address the availability of cotton for the Indian textile sector amidst geopolitical tensions. This move is projected to lower input costs in the textile and apparel industry, providing relief to manufacturers and consumers while considering the interests of domestic farmers. It is expected to positively impact the performance of the domestic textile sector, particularly benefiting small and medium enterprises by ensuring better cotton availability in the market.
