The Indian textile sector is urging the government to scrap the 11% import duty on cotton, citing severe raw material shortages while seeking to improve global competitiveness.
Reports say the levy has resulted in domestic cotton prices being consistently higher than global figures.
India recently hit 15-year domestic lows for cotton production in 2024-25.
The Confederation of Indian Textile Industry (CITI) says the price differential makes it difficult for manufacturers to compete in export markets and threatens job security.
While the government advisory body, the Committee on Cotton Production and Consumption (COCPC), has recommended scrapping the duty or at least freezing it for six months.
Some commentators have added that the duty removal could be used as a bargaining chip in ongoing trade talks with the US.
However, domestic cotton growers argue that eliminating the duty could hurt local prices, with experts noting the duty primarily helps traders and multinationals rather than farmers.
According to the Indian Economic Times, India’s Ministry of Textiles is generally supportive and highlights that affordable raw cotton is crucial for achieving India’s textile export targets.
The sector aims to reach $100 billion (£78bn) in exports by 2030.
