Ministries, including finance, textiles, and agriculture, are deliberating on the duty, with the textile industry seeking its removal to mitigate cost pressures on domestic companies due to high prices.
“We are talking to Finance and Agriculture (ministries), both, and it is in an advanced stage of consultation. We hope that the consultation will be finalised in the near future,” the official told PTI.
Also Read: Textile industry seeks removal of cotton import duty
A delegation comprising apparel industry representatives and exporters met Vice President C P Radhakrishnan and several Union ministers recently and sought the removal of the duty.
The delegation argued that the textile industry’s cotton requirement for the current year is projected at around 337 lakh bales, whereas cotton arrivals for the 2025-26 season are estimated at 292.15 lakh bales, resulting in a supply-demand gap of nearly 45 lakh bales.
It said this shortage is putting pressure on spinning mills and downstream textile manufacturers due to the limited availability of high-quality raw materials and rising input costs.
Also Read: Apparel industry representatives meet Vice President, seek removal of 11 pc import duty on cotton