SIMA calls for permanent removal of 11% cotton import duty

Association seeks policy changes to address cotton price volatility and support long-term textile industry competitiveness

The Southern India Mills’ Association (SIMA) has called for the permanent removal of the 11% import duty on cotton to help control volatility in cotton prices. SIMA chairman Durai Palaniswamy also urged the government to curb the import parity price policy adopted by the Cotton Corporation of India (CCI) and cotton trade.

SIMA seeks permanent removal of cotton import duty

The Centre should permanently remove the 11% import duty on cotton to control volatility in cotton prices, said Durai Palaniswamy, chairman of the Southern India Mills’ Association (SIMA).

Speaking at the association’s annual meeting, Palaniswamy said, “Curbing speculation in the raw material prices is essential to provide a level-playing field for the entire textile value chain.” He also said the government should curb the import parity price policy adopted by the Cotton Corporation of India (CCI) and cotton trade.

Palaniswamy said the government should also consider changing the role of CCI on a par with the China National Cotton Reserves Corporation, which maintains more than a year’s stock of cotton and always maintains stability in prices.

According to him, the Indian textile industry is entering a new phase of transformation in which diversification, technology adoption, sustainability and value addition will be key drivers of long-term global competitiveness.

He said the future growth of the industry would depend not only on expanding capacity, but also on producing high-value products with greater efficiency through innovation, productivity, advanced technology, sustainability and market diversification.

SIMA office-bearers re-elected

S. Krishnakumar, Managing Director, Sulochana Cotton Spinning Mills, Tiruppur, was re-elected deputy chairman of SIMA, while K. Sivaraj, Managing Director of Sivagiri Spinning Mills, was re-elected its vice-chairman for 2026-27.

At the annual meeting of the SIMA Cotton Development & Research Association (SIMA CD & RA), S.K. Sundararaman, Managing Director, Shiva Tex-yarn Limited, Coimbatore, was re-elected chairman for 2026-27.

Durai Palaniswamy, Executive Director, Pallava Textiles P Limited, Erode, was re-elected deputy chairman of the SIMA CDRA, while K. Krishnakumar, Managing Director of Sulochana Cotton Spinning Mills, will continue as its vice-chairman.