Waive cotton import duty on permanent basis, urges SIMA

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The Southern India Mills' Association (SIMA) has intensified its appeal to the Union government for a permanent revocation of the 11 per cent import levy on raw cotton. Following the association's annual meeting, Durai Palaniswamy, Chairman emphasized, eliminating the tariff is critical to neutralizing import-parity pricing pressures exerted by major traders. Experts say, recurring raw material volatility harms downstream competitiveness, prompting calls to remodel the Cotton Corporation of India along Beijing's strategic reserve framework to secure long-term pricing equilibrium.

With fiber expenditures accounting for up to 70 per cent of spinning operation outlays, spinning units face immense margin decline. Analysts project, supply deficits will persist unless fiscal frameworks adapt to global raw material realities. Securing unhindered access to diverse fiber varieties is essential for safeguarding our export ecosystem, stated a senior textile economist tracking regional manufacturing hubs. Without reforms, domestic fabric and apparel manufacturers risk losing ground to regional competitors operating under permanent zero-duty regimes.