Tamil Nadu CM Urges Centre to Remove Cotton Import Duty Amid Textile Sector Crisis

 

Chennai, May 14: 

Tamil Nadu Chief Minister C Joseph Vijay has urged Prime Minister Narendra Modi to remove the existing 11 per cent import duty on cotton, citing a severe crisis faced by the State’s textile and apparel industry due to rising raw material prices.

In a letter addressed to the Prime Minister on Thursday, Vijay highlighted that Tamil Nadu is India’s largest textile and apparel exporting State and that lakhs of people, particularly women from rural and semi-urban areas, depend on the sector for direct and indirect employment.

According to the Chief Minister, the textile industry has recently been hit hard by a sharp rise in cotton and yarn prices caused by lower cotton production and increased trading activity in the domestic market.

He noted that the price of cotton has surged from ₹54,700 to ₹67,700 per candy over the past two months, marking an increase of nearly 25 per cent. During the same period, yarn prices rose from ₹301 to ₹330 per kilogram, adding pressure on garment manufacturers and exporters.

Vijay stated that continued supply of raw material could be ensured only through imports under the present circumstances. However, the existing 11 per cent import duty on cotton is making imports expensive and affecting the competitiveness of Indian textile exporters in global markets.

The Chief Minister stressed that allowing duty-free cotton imports would help the industry fulfil growing export commitments, maintain global competitiveness, and support the sustainability of the textile value chain.

Describing the textile and apparel sector as one of the country’s largest employment generators after agriculture, Vijay said the government has a major responsibility to protect jobs and ensure industrial stability.

“I request your intervention to remove the import duty on cotton from the existing 11 per cent to 0 per cent to ensure the availability of raw material. This measure will enable the textile and apparel industry to remain globally competitive, enhance exports as well as protect jobs,” Vijay stated in the letter.

Industry stakeholders have also expressed concerns that rising cotton prices could reduce profit margins, slow export growth, and impact production activities if adequate raw material supplies are not maintained in the coming months.