Textile Industry Thanks FM for Cotton Duty Exemption

The predominantly cotton-based Indian textile industry has long appealed for an exemption from the 11% import duty on cotton during the off-season (April–September) to help overcome shortages while creating a win-win scenario for both farmers and industry.

In March 2025, a textile industry delegation, accompanied by Smt. Vanathi Srinivasan, Hon’ble MLA from Coimbatore Constituency, met Union Finance Minister Smt. Nirmala Sitharaman in Coimbatore. A memorandum was submitted seeking duty-free cotton imports during the off-season. The Finance Minister assured that the request would be reviewed in consultation with relevant Ministries and stakeholders across the cotton value chain.

Following this, the Ministry of Textiles organized a stakeholder consultation and recommended an exemption on cotton imports from April to September. The matter was again highlighted during the visit of Union Agriculture and Farmers’ Welfare Minister Shri Shivraj Singh Chouhan to Coimbatore on July 11, 2025, when he launched the “Mission for Cotton Productivity.”

Responding to the industry’s repeated requests, the Ministry of Finance issued a Notification on August 18, 2025, exempting all varieties of cotton from import duty effective August 19 to September 30, 2025.

Mr Ravi Sam (Vice Chairman Texprocil)

Subsequently, on August 20, 2025, a delegation led by MLA Smt. Vanathi Srinivasan met the Finance Minister in Delhi to express gratitude for granting this exemption. The delegation included Mr. Ravi Sam, Vice Chairman TEXPROCIL; Mr. Dinesh Nolkha, Vice Chairman CITI; Mr. Venketrama Raja, MD Ramco; and Secretary General CITI.

In a press release, Mr. Ravi Sam, Vice Chairman TEXPROCIL, thanked the Hon’ble Prime Minister for addressing the industry’s long-standing demand. He urged that the exemption be extended to cover Bills of Lading dated up to September 30, enabling mills to fully benefit from the relief, ease raw material shortages, and ensure price parity. He added that this move would help expand India’s textile market share, especially in the UK, following the recently concluded FTA.

Mr. Sam also conveyed that the Union Finance Minister acknowledged the challenges created by U.S. tariffs and assured that the Government is actively working on solutions. Industry requests under consideration include:

A 2-year moratorium on repayment of principal amounts.
A 30% collateral-free loan under ECLGS with 5% interest subvention, similar to Covid-era relief for MSMEs and large companies.
Enhancing RoDTEP rates, removing value caps, and extending RoSCTL benefits for another five years.

Mr. Sam further emphasized that these measures are crucial to maintaining financial viability, protecting millions of jobs, particularly in rural India. He expressed appreciation to Smt. Vanathi Srinivasan for consistently championing the cause of the textile industry at the highest levels of government, and voiced optimism that her continued support would strengthen the sector, especially in Tamil Nadu.