Remove import duty on cotton to ensure supply, CM Vijay urges Modi

Tamil Nadu Chief Minister C. Joseph Vijay on Thursday wrote to Prime Minister Narendra Modi urging him to remove the 11% import duty on cotton 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,” Mr. Vijay said.

Lakhs of people are dependent on this sector for both direct and indirect employment, especially women from rural and semi-urban backgrounds, Mr. Vijay said.

“Of late, the industry is facing severe crisis due to increase in cotton price, and consequently yarn prices. I understand this is caused primarily due to shortage of cotton production and increase in trading activity in the country,” he said.

The price of cotton has increased from ₹54,700 to ₹67,700 per candy, which is an increase of 25% during the last two months while the yarn price has increased from ₹301 to ₹330 per kg.

“In this situation, the continued supply of raw material can be ensured only through imports. However, there is an import duty of 11% on cotton.”

In such a situation, permitting duty-free cotton imports would help the industry meet increasing export commitments and remain globally competitive. “After agriculture, the textile and apparel sector is one of the largest employment-generating sector. Hence, there is a significant responsibility on the government to safeguard the employment of lakhs of people and ensure the sustainability of the textile value chain.”