Tiruppur exporters press Centre to scrap 11% cotton import duty as 45-lakh-bale shortfall hits FY26

AEPC and Tiruppur Exporters' Association have urged the Centre to remove the 11% cotton import duty, flagging a 45-lakh-bale supply gap against 337-lakh-bale demand. The cluster drives 68% of India's knitwear exports worth ₹44,747 crore in FY25 and warns FTA rivals are eroding competitiveness.

— FiledThu, 14 May, 2026, 19:33 IST·First seen Thu, 14 May, 2026, 22:46 IST·Source BL · Consumer & Economy

What happened

AEPC and Tiruppur knitwear exporters urged Centre to scrap 11% cotton import duty, citing a 45-lakh-bale supply gap threatening apparel export competitiveness

Key facts

  • 11% duty
  • ₹44,747 crore FY25 exports
  • ₹2.3 lakh crore domestic
  • 337 lakh bales demand
  • 292.15 lakh bales arrivals
  • 45 lakh bales shortfall
  • 68% share

Why this matters

Policy ask from AEPC/TEA on cotton duty removal opens a window to lock in supply deals or vertically integrate spinning capacity ahead of any tariff reset.