News Capsule: Govt May Remove 11% Cotton Import Duty to Ease Pressure on Textile Industry
26-May-2026 11:02 AM
News Capsule: Govt May Remove 11% Cotton Import Duty to Ease Pressure on Textile Industry
★ The government is likely to remove the 11% import duty on cotton till October to provide relief to the textile industry, which is facing rising input costs due to the West Asia crisis. Higher crude oil prices have pushed up fuel, polyester, and cotton prices, with domestic cotton prices rising nearly 10-15% over the past month.
★ According to AEPC, India’s cotton demand for 2025-26 is estimated at around 337 lakh bales, while arrivals are expected at only 292.15 lakh bales, creating a supply gap of nearly 45 lakh bales.
★ The textile industry believes high raw material costs are weakening India’s competitiveness against countries like Bangladesh and Vietnam. However, the government is also considering farmers’ interests before taking a final decision on the duty cut.