Textile industry awaits relief as Govt reviews 11% cotton import duty

The government is in an “advanced stage of consultation” regarding the 11% customs duty on imports of raw cotton and is examining whether the levy can be removed, a senior official said. A decision on the matter is expected soon.

The deliberations involve multiple ministries, including finance, textiles, and agriculture. The textile industry has been seeking the removal of the duty to mitigate cost pressures on domestic companies caused by high prices.

The 11% customs duty applies to imports of raw cotton. Industry players say scrapping it would help ease input costs for domestic textile manufacturers.