BackECONOMY
Textiles Ministry weighing cotton import duty suspension; Mumbai recommendation and Coimbatore meeting discussed
The Union Ministry of Textiles is studying a recommendation to suspend the import duty on cotton from April to September for five years. A Coimbatore stakeholders meeting discussed this following a Mumbai committee recommendation, with the proposal currently with the Ministry for perusal. The briefing also covered hank yarn obligations, investment schemes, and other import and ATUFS issues.
Why It Matters
A potential suspension of cotton import duty could impact cotton supply, textile pricing, and investments under textile schemes, shaping the sector's short- to mid-term outlook.
Timeline
8 Events
Tamil Nadu viewpoint: State urges removal of cotton import duty; calls for Cotton Corporation of India warehouse
May 14, 2026
R. Lalitha, Commissioner, Department of Textiles, Tamil Nadu, noted the large scale of the state’s textile industry and that Tamil Nadu has urged the Centre to remove the import duty on cotton; the Union Ministry should ensure Cotton Corporation of India sets up a cotton warehouse in the state.
Industry linkage to schemes and production data: Returns discussion and documentation
May 14, 2026
Industry was urged to file production details, and the idea of linking returns to some schemes or bank loans was to be studied.
ATUFS grievances: 855 cases pending; government seeking positive solution
May 14, 2026
Regarding the 855 grievances pending for ATUFS, the government said it was trying to find a positive solution; grievances may be closed if industries cannot provide alternative documents.
Import duties on fabric imports: Ministry considering duties to protect garment industry
May 14, 2026
The Ministry was also considering imposing duties on some fabric imports to protect the garment industry.
Tex schemes: Expansion and Employment Scheme and Tex Eco to trigger investments; implementation planned from August–September
May 14, 2026
The Textile Expansion and Employment Scheme and the Tex Eco schemes are expected to trigger investments in the industry and are planned to be implemented from August–September (2026).
Hank yarn obligation: Order on reduction expected by end of this quarter or early next quarter
May 14, 2026
Textile Commissioner Vrunda Manohar Desai said an order reducing the hank yarn obligation for textile mills is expected by the end of this quarter or early next quarter.
Coimbatore stakeholders meeting: Ministry official says Mumbai recommendation discussed; proposal awaiting perusal
May 14, 2026
At the stakeholders meeting in Coimbatore on Thursday, a senior Ministry official stated that the Mumbai committee's recommendation to suspend the cotton import duty was discussed and that the proposal is with the Ministry of Textiles for perusal.
Mumbai meeting: Committee on Cotton Production and Consumption recommended suspending import duty on cotton
May 2026
A meeting of the Committee on Cotton Production and Consumption held in Mumbai recently recommended suspending the import duty on cotton, a decision highlighted as having been taken following representations from the consuming industry.