COCPC urges Centre to scrap 11% import duty on cotton amid tight supply in India

The Committee on Cotton Production and Consumption (COCPC), chaired by the Union textile commissioner, has recommended the removal of the 11 per cent import duty on cotton to ease supply constraints. The recommendation was made at a meeting held in Mumbai, attended by industry stakeholders including K Venkatachalam, Chief Advisor to the Tamil Nadu Spinning Mills Association (TASMA).

Venkatachalam said if the Centre is unable to fully remove the duty, the panel has advised keeping the existing rate unchanged for the coming months. He noted that any modification in the import duty structure would need to be officially notified by the Ministry of Finance. He said the move could also signal positively to the US administration by effectively lowering cotton trade barriers, potentially aiding Indian textile exports to the American market.

This recommendation follows lower domestic cotton production estimates, with the Cotton Association of India (CAI) projecting output at 291.30 lakh bales for the 2024-25 season, down from previous highs. Imports are expected to more than double to 33 lakh bales, compared to 15.20 lakh bales last season.

With total supply pegged at 306.83 lakh bales against an estimated consumption of 315 lakh bales, the gap is prompting mills to source cotton globally as stagnant yields, pests, and climate change weigh on domestic output.