Tamil Nadu Chief Minister C Joseph Vijay has appealed to Prime Minister Narendra Modi to remove the existing 11% import duty on cotton, warning that the state’s textile industry is under severe pressure due to rapidly rising raw material costs.
In a letter sent to the Prime Minister on Thursday, Vijay said the sharp increase in cotton prices has significantly impacted yarn prices, creating difficulties for textile manufacturers and exporters across Tamil Nadu.
According to the Chief Minister, cotton prices have surged from ₹54,700 to ₹67,700 per candy within the last two months, marking a 25% rise. During the same period, yarn prices increased from ₹301 to ₹330 per kilogram.
Vijay explained that the price rise is largely driven by a shortage of cotton supplies and increased trading activity in the domestic market. He stressed that allowing duty-free cotton imports would help ensure a stable supply of raw materials and support the textile sector in meeting export commitments.
“This measure will help the textile and apparel industry remain globally competitive, improve exports and protect employment,” the Chief Minister said in the letter.
He further highlighted that the textile and apparel industry is one of India’s largest employment-generating sectors after agriculture, supporting lakhs of workers across the country. He urged the Centre to take immediate steps to safeguard jobs and maintain the sustainability of the textile value chain.
Meanwhile, Union Textile Commissioner Vrunda Manohar Desai also indicated that recommendations have been submitted to the central government seeking the complete removal of the 11% cotton import duty or at least temporary duty-free imports during the shortage period between April and September.
Speaking at a textile industry consultation meeting in Coimbatore, Desai said additional recommendations were also made to impose higher duties on certain low-cost fabric imports from foreign countries to protect domestic manufacturers.