AEPC Seeks Removal Of Cotton Import Duty To Boost Textile Competitiveness

New Delhi, May 14 (KNN) The Apparel Export Promotion Council (AEPC) has urged the Centre to reduce import duty on cotton to zero from the existing 11 percent, citing rising input costs and supply constraints impacting the textile and apparel industry.

AEPC Chairman A. Sakthivel led a delegation of industry representatives that met Union Ministers Piyush Goyal, Shivraj Singh Chouhan, and Giriraj Singh, submitting representations on the issue.

Rising Input Costs Erode Export Competitiveness 

During the meeting, the delegation highlighted that high domestic cotton prices and elevated input costs are eroding the competitiveness of Indian exporters at a time when several Free Trade Agreements (FTAs) are opening new market opportunities.

Industry representatives pointed out that competing apparel-exporting nations are able to source cotton at internationally competitive rates, while Indian manufacturers continue to face higher raw material costs due to import duties.

They argued that reducing or removing the duty would improve India’s positioning in global textile markets, support export growth, and help generate employment across the value chain, from spinning mills to garment manufacturing units.

Widening Cotton Supply-Demand Gap Raises Concerns 

The delegation also flagged a widening supply-demand gap in cotton availability. Domestic requirement for the current year is projected at around 337 lakh bales, while arrivals for the 2025–26 season are estimated at 292.15 lakh bales, leaving a shortfall of nearly 45 lakh bales.

According to the industry, this mismatch is expected to intensify pressure on spinning mills and downstream textile units, further pushing up input costs and affecting production planning.

The AEPC emphasised that aligning raw material costs with global benchmarks is essential for India to fully leverage opportunities emerging from recent trade agreements and strengthen its position in the global apparel export market.

(KNN Bureau)