Tamil Nadu CM Urges Centre to Remove Cotton Import Duty amid Textile Sector Crisis

In his letter sent on Thursday, (14 May) the Chief Minister said Tamil Nadu, India’s largest textile and apparel exporting state, is witnessing severe stress due to a sharp rise in cotton and yarn prices caused by lower cotton production and increased trading activity.

Highlighting the importance of the sector, Vijay said lakhs of people, especially women from rural and semi-urban areas, depend on the textile industry for direct and indirect employment. According to the Chief Minister, cotton prices have surged by nearly 25% over the last two months, increasing from Rs 54,700 to Rs 67,700 per candy, while yarn prices have risen from Rs 301 to Rs 330 per kg. He noted that the industry is facing a major raw material shortage, making imports essential to maintain uninterrupted production.  Vijay stated that the existing 11% import duty on cotton is making imports costly at a time when the industry requires affordable raw materials to meet export commitments and remain globally competitive.

Describing the textile and apparel sector as the country’s second-largest employment generator after agriculture, the Chief Minister urged the Centre to reduce the import duty from 11% to 0%.   He said duty-free cotton imports would help stabilise raw material availability, support exports, protect jobs, and ensure the sustainability of the textile value chain in the country.