BackECONOMY
Tamil Nadu CM Vijay urges Modi to remove 11% cotton import duty to secure supply
Tamil Nadu Chief Minister C. Joseph Vijay wrote to Prime Minister Narendra Modi urging removal of the 11% import duty on cotton to ensure the availability of raw material. He argued this would help the textile and apparel industry stay globally competitive, boost exports, and protect jobs, noting lakhs of people depend on the sector. He also cited rising cotton and yarn prices as evidence of a crisis and said imports are necessary to maintain supply.
Why It Matters
If adopted, the duty removal could ease input costs for a major employment sector and impact textile exports and the livelihoods of workers across rural and semi-urban areas.
Timeline
1 Event
Tamil Nadu CM Vijay writes to PM Modi urging removal of 11% import duty on cotton
May 14, 2026
Tamil Nadu Chief Minister C. Joseph Vijay wrote to Prime Minister Narendra Modi urging the removal of the 11% import duty on cotton to ensure the availability of raw material for the textile and apparel sector. He argued that this measure would help the industry remain globally competitive, enhance exports, and protect jobs, noting that lakhs of people depend on the sector for direct and indirect employment, especially women from rural and semi-urban backgrounds. He stated that the industry has been facing a crisis due to rising cotton prices and yarn prices, caused by a shortage of cotton production and increased trading activity in the country. He highlighted that cotton prices have risen from ₹54,700 to ₹67,700 per candy (a 25% increase over the last two months) and yarn prices from ₹301 to ₹330 per kg. He asserted that in this situation, the continued supply of raw material can be ensured only through imports, and that duty-free cotton imports would help the industry meet increasing export commitments and sustain the textile value chain.