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?CITI Calls for Duty-Free Cotton to Boost India’s Textile Competitiveness ?

The Confederation of Indian Textile Industry (CITI) said that removing import duty on cotton would boost confidence in India’s textile and apparel sector, which is facing uncertainty due to high US tariffs. Duty-free cotton imports would ensure globally competitive raw material prices.

CITI urged the government to remove the 11% import duty on all cotton varieties to improve competitiveness. The government has already extended the cotton import duty exemption until December 31, 2025.

CITI Chairman Ashwin Chandran said this move would align domestic cotton prices with global prices and support spinning and textile industries. He added that the measure is important as cotton production may fall this year and quality could worsen due to unseasonal rains. It would also allow MSP and farmer-support schemes to work without distorting prices, especially since Kapas MSP has risen by nearly 8% this season.

Industry bodies raised this issue at a stakeholder meeting for the 2025–26 cotton season. Over the past decade, India imported about 2 million bales of cotton annually, mainly for specialised needs.

The textile and apparel sector, a major job provider, is under pressure from a 50% US tariff effective August 27, 2025. The US accounts for 28% of India’s textile exports, worth about $11 billion in FY25. 

The impact is already visible, with textile exports down 12.92% and apparel exports down 12.88% in October 2025. The situation has worsened after Mexico also imposed a 50% tariff on Indian goods, and India has no free trade agreement with Mexico.

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