Centre nears decision on scrapping 11% cotton import duty as mills face 45 lakh bale shortfall
Government in advanced consultation to remove the 11% customs duty on raw cotton, with FY26 demand pegged at 337 lakh bales against 292.15 lakh bales of supply. Move would relieve spinning mills and apparel exporters battling rising input costs.
Government in advanced consultation on removing 11% import duty on raw cotton, as textile industry faces a 45 lakh bale supply-demand gap for 2025-26, pressuring spinning mills and apparel exporters with rising input costs.
Why this matters
Decision follows textile lobby's earlier push to scrap the 11% duty after a 25% price spike. Signals Centre's responsiveness as mills confront a 45 lakh bale supply gap and squeezed export margins.
Retail-company signals steady at 1,022 over the last 90 days, reflecting consistent policy and input-cost activity.
Also reported by
- BL · Consumer & Economy — Same time