The Ministry of Textiles has clarified that the removal of the 11% customs duty on imported cotton will not negatively impact Indian farmers.
According to the ministry, the Minimum Support Price (MSP) mechanism operated by the Cotton Corporation of India Ltd. (CCI) ensures that farmers receive at least 50% above their cost of production. The Ministry added that the temporary duty exemption on cotton imports, applicable until 31st December , is aimed at stabilising input costs across the textile value chain—including yarn, fabric, garments, and made-ups—thereby providing relief to both manufacturers and consumers.
Officials explained that imported cotton caters primarily to specialised industrial requirements and does not directly compete with domestic cotton. Most imports, they said, occur during lean periods or when domestic stocks are insufficient, minimising any overlap with peak procurement seasons. The ministry also emphasised that the Government continues to monitor cotton prices closely and retains the flexibility to impose safeguards whenever required.
The statement underlined that affordable, high-quality cotton strengthens India’s export competitiveness, revives orders for small and medium enterprises, and supports export-oriented units. With the textile-apparel value chain employing more than 45 million people, ensuring a stable cotton supply is seen as crucial for preventing job losses and sustaining industry growth.
Between April and October 2024–25, cotton textiles contributed 33% of India’s total textile and apparel exports, valued at US $ 7.08 billion, making them the second-largest segment after readymade garments. The ministry added that with 95% of domestic cotton consumed by the textile industry, the duty exemption is expected to indirectly benefit farmers, as enhanced global competitiveness enables mills to pay better prices to producers.
