Duty Cut On Cotton Under Review

Corporate Update

Duty Cut On Cotton Under Review

The government is moving to ease cost pressures on India’s textile sector. A proposal to cut, or even eliminate, the 11% import duty on cotton is under active consideration, with the Ministries of Textiles, Agriculture and Finance jointly reviewing the move.

The industry has been pushing for relief as raw cotton prices rise, squeezing margins and hurting competitiveness. Officials say a temporary duty cut during the lean season is also on the table.

The Ministry of Textiles is simultaneously seeking removal of the 2.5% duty on rayon-grade wood pulp, a key input for the viscose value chain. Export incentives are also under review, with proposals to restore and increase RoDTEP and RoSCTL rates being examined.

With geopolitical tensions in West Asia disrupting trade routes, the government is in close coordination with industry, shipping authorities and energy suppliers. Alternative logistics routes and fuel supply continuity are being actively managed.

The Ministry of Textiles is simultaneously seeking removal of the 2.5% duty on rayon-grade wood pulp, a key input for the viscose value chain. Export incentives are also under review, with proposals to restore and increase RoDTEP and RoSCTL rates being examined.

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