Centre likely to scrap 11% cotton import duty till October as prices surge 10-15%
Indian textile and apparel manufacturers face a 45 lakh bale supply gap against 337 lakh bales demand, with West Asia crisis driving cotton prices up 10-15%. AEPC-backed duty waiver aims to restore cost competitiveness against Bangladesh and Vietnam under new FTAs.
What happened
Apparel Export Promotion Council · Centre likely to scrap 11% cotton import duty till October to ease input costs for Indian textile and apparel manufacturers
Key facts
- 11% duty
- 10-15% price surge
- 337 lakh bales demand
- 292.15 lakh bales arrivals
- 45 lakh bales gap
- 15% cotton imports
- 20% yarn imports
Why this matters
The 45 lakh bale structural deficit plus policy-driven cost volatility creates an opening to acquire upstream ginning or contract-farming assets that lock in domestic supply ahead of the next price cycle.