# Centre in advanced talks to remove 11% cotton import duty

2026-08-19T18:08:33+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The government is in the advanced stage of consultations to remove the 11 per cent customs duty on imports of raw cotton, a senior official said on Friday. The textiles, finance and agriculture ministries are examining the levy, with a decision expected soon, as the textile industry pushes for its removal to ease cost pressures from high domestic prices. A delegation of apparel industry representatives and exporters recently met Vice President C P Radhakrishnan and several Union ministers, seeking the duty's removal. They argued that the textile industry's cotton requirement for the current year is projected at around 337 lakh bales, while arrivals for the 2025-26 season are estimated at only 292.15 lakh bales, leaving a supply-demand gap of nearly 45 lakh bales.

## Indian Opinion Analysis

Removing the 11 per cent duty would directly lower raw material costs for India's Rs 1.5 lakh crore textile export sector, which competes with Bangladesh and Vietnam. The 45 lakh bale shortfall is the core problem: domestic output is falling short of mill demand, pushing up prices and eroding margins for spinners and garment makers. The finance ministry typically resists revenue forgone unless the textiles ministry can show job losses are imminent. A decision in the next few weeks will signal whether the government prioritises export competitiveness over customs revenue. Watch for the Cabinet's next note on tariff changes.

## Coverage

- millenniumpost.in <https://www.millenniumpost.in/business/govt-in-advanced-stage-of-talks-on-cotton-import-duty-removal-661281>
  PTI-sourced report, leads with official's statement and industry demand, no editorial slant.

This story was synthesised by AI from the source linked above.

Tags: C P Radhakrishnan, Ministry of Finance, Ministry of Textiles, PTI
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