For the second time, CITI has requested the government to scrap the import duty on raw cotton. As per the joint report of Gherzi and ICAC, the removal of the import duty of 11 percent will reduce the price of raw cotton in the international market. In turn, this will reduce production costs, thus making India more competitive in the international arena.

According to media reports, India's textile and apparel sector (readymade garment industry) exports declined by 2.2 percent in FY2026, falling to $35.79 billion. This sector is the second largest employer in the country, and the decline in exports due to import duties is a matter of concern for the domestic industry.

It should be noted that the Ministry of Agriculture and the Ministry of Textiles have opposing views on the same. The Ministry of Textiles favors removing the import duty to increase the increase of production and exportation of textiles, thus making India more competitive in the international market.

Discussions are ongoing with industry and farmer groups to ensure that this does not have any negative impact on farmers.

A joint report by Gerzi Consulting Company and the International Cotton Advisory Committee (ICAC) offers several suggestions to stabilize the cotton market. It states that for cotton purchased between November and March, a scheme similar to the Cotton Price Stabilization Fund should be established to mitigate working capital problems during the peak season. A 5% interest subsidy could be provided to ensure mills have working capital.

While the textile industry is demanding the removal of the 11% import duty, the government has initiated work on a 5-F plan for Indian cotton. Recently, the Union Cabinet approved the Cotton Productivity Mission to increase cotton production and quality in the country. This mission will be implemented over the next five years (2026-27 to 2030-31).

The Cotton Revolution Mission will be implemented under the government's 5-F vision. This means from farm to fiber, fiber to factory, factory to fashion, and fashion to foreign markets. The government believes that this mission will not only benefit the country's 3.2 million farmers but also strengthen India's competitiveness in the international textile market. Currently, the textile industry is demanding the abolition of import duties on cotton.