Textile lobby pushes Centre to scrap 11% cotton import duty as prices spike 25%
SIMA, TEA and TEXPROCIL want the 11% raw cotton import duty removed after domestic prices jumped 25% and output fell 40 lakh bales short of 328 lakh bales demand. Mills warn knitwear exporters are losing ground to Vietnam and Bangladesh, with 70% of Tiruppur's knitwear shipments at risk.
What happened
Indian Textile Industry · Indian textile industry bodies SIMA, TEA and TEXPROCIL have urged the government to scrap the 11% raw cotton import duty as domestic
Key facts
- 11% import duty
- 25% price surge
- 10% output shortfall
- 291 lakh bales production
- 328 lakh bales demand
- 40 lakh bales shortage
- ₹5,659 crore mission
- 70% knitwear exports
Why this matters
Distressed Tiruppur knitwear capacity becomes acquirable at trough multiples if duty scrap is delayed, opening consolidation plays for vertically integrated mills.