The Tiruppur knitwear and textile industry has expressed appreciation for the government’s decision to temporarily lift customs duty on cotton imports. This move is seen as a timely intervention to reduce production costs, enhance raw material availability, and boost the global competitiveness of India’s textile and apparel exports.
Industry leaders have lauded the temporary exemption from all customs duties on cotton imports from June 1 to October 30. This initiative aims to address concerns regarding escalating cotton prices and ensure an ample supply for the textile sector. Manufacturers, exporters, and spinning mills are expected to benefit significantly from this decision, given the challenges posed by rising raw material costs in recent months.
A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), welcomed the announcement, emphasizing that the duty waiver would greatly enhance cotton availability for the Indian textile and apparel industry. He highlighted the importance of this measure in moderating domestic cotton prices, ensuring quality cotton availability, and reducing input costs throughout the textile value chain.
The removal of customs duty on cotton imports is viewed as a crucial step to strengthen the competitiveness of Indian textile and apparel exports in the global market. This move comes at a time when exporters are facing tough competition from various textile-producing nations. Particularly, small and medium enterprises (SMEs) are expected to benefit from this decision, offering relief from the pressure caused by soaring cotton and yarn prices.
The Tiruppur Exporters’ Association (TEA) President, K.M. Subramanian, also welcomed the development, noting its direct positive impact on the knitwear manufacturing sector. He mentioned that the industry has been advocating for measures to alleviate the burden of increasing raw material costs. This decision is anticipated to lower production expenses and enhance the operational environment for knitwear exporters.
P. Shanmugasundaram, President of the South India Hosiery Manufacturers Association (SIHMA), highlighted that the temporary duty exemption would provide support to the entire textile ecosystem, including spinning mills, fabric manufacturers, and garment exporters. The lower cotton prices resulting from this exemption are expected to improve raw material availability and benefit major textile hubs like Tiruppur, which is crucial for India’s knitwear exports.
Industry stakeholders are optimistic that the duty waiver will stabilize cotton prices, boost export growth, and inject fresh momentum into one of the country’s largest employment-generating sectors.
