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Corporate Update

CITI Urges Govt. to Scrap 11% Cotton Import Duty

The Confederation of Indian Textile Industry (CITI) has urged the government to permanently abolish the 11% import duty on cotton. CITI indicates that rising input costs of cotton are eroding margins and undermining the global competitiveness of Indian textile and apparel manufacturers. The industry body says duty removal is critical to stabilizing raw material prices and strengthening India’s export edge.

Applicable duty on cotton is 5% Basic Customs Duty, 5% Agri Infra and Development Cess, a 10% Social Welfare Surcharge, amounting to 11% duty on cotton imports. Duty exemption on cotton expired on December 31, 2025.

CITI indicates that rising input costs of cotton are eroding margins and undermining the global competitiveness of Indian textile and apparel manufacturers. The industry body says duty removal is critical to stabilizing raw material prices and strengthening India’s export edge.

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