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Cotton Duty Debate Intensifies Between Textile and Agriculture Ministries
The Confederation of Indian Textile Industry (CITI) has demanded the removal of the 11% import duty on raw cotton to reduce production costs and stem the decline in exports.
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.
