Textile Ministry studying demand for removal of import duty on cotton

The Union Ministry of Textiles is said to be studying a recommendation from the Textile Commissioner’s Office to suspend the import duty on cotton from April to September every year for five years.

A senior official of the Ministry who interacted with industry representatives in Coimbatore on Thursday (May 14, 2026) at a stakeholders meeting said that it was decided at a meeting of the Committee on Cotton Production and Consumption held recently in Mumbai to recommend suspension of the duty following representation from the consuming industry.

The proposal is with the Ministry of Textiles for its perusal.

Regarding the demand of the industry to reduce the hank yarn obligation, Textile Commissioner Vrunda Manohar Desai said an order is expected by the end of this quarter or early next quarter reducing the hank yarn obligation for textile mills.

The Textile Expansion and Employment Scheme and the Tex Eco schemes are expected to trigger investments in the industry are expected to be implemented from August – September, the official added.

The Ministry was also recommending duties on some of the fabric imports to protect the garment industry.

Regarding the 855 grievances pending for the ATUFS, she said that the government was trying to find a positive solution. Yet, if the industries are unabel to provide alternative documents, the grievances may have to be closed.

Urging the industry to file the production details, she said the industry’s suggestion of linking the returns to some of the schemes or bank loans will be studied.

R. Lalitha, Commissioner, Department of Textiles, Tamil Nadu, said that the scale of the textile industry in Tamil Nadu was huge and so the problems were also different. The Tamil Nadu government has written to the Centre on the need to remove the import duty on cotton and the Union Textile Ministry should ensure that the Cotton Corporation of India sets up a cotton warehouse in the State.