Vijay urges Centre to scrap 11% cotton import duty, warns of textile crisis

Tamil Nadu chief minister C. Joseph Vijay has written to Prime Minister Narendra Modi seeking immediate removal of the 11 per cent import duty on cotton, warning that the state’s textile and apparel industry is under “severe stress” due to rising raw material costs.

In his letter on Thursday, Vijay said the sharp surge in cotton and yarn prices has placed immense financial pressure on garment manufacturers and could threaten lakhs of jobs linked to the sector.

“The textile and apparel industry in Tamil Nadu is undergoing a severe crisis because of the unprecedented rise in cotton and yarn prices,” the chief minister wrote.

Sharp rise in cotton and yarn prices

Vijay highlighted a steep escalation in input costs over the past two months. According to him:

• Cotton prices have jumped from Rs 54,700 to Rs 67,700 per candy, marking nearly a 25 per cent increase

• Yarn prices have risen from Rs 301 per kg to Rs 330 per kg

He attributed the spike to domestic cotton supply shortages and increased trading activity across the country, which has disrupted the supply chain for textile manufacturers.

Industry dependence on imports

The chief minister said that with domestic availability tightening, imports have become essential to sustain production. However, the existing 11 per cent import duty on cotton is making imports costly and unviable for many units.

“Permitting duty-free cotton imports will help the industry meet increasing export commitments and remain globally competitive,” he said.

Employment concerns flagged

Calling Tamil Nadu India’s largest textile and apparel exporting state, Vijay stressed the sector’s importance in generating large-scale employment, particularly for women in rural and semi-urban areas.

“After agriculture, the textile and apparel industry remains one of the country’s largest job creators. There is a significant responsibility on the government to safeguard the employment of lakhs of people and ensure the sustainability of the textile value chain,” Vijay said.

Appeal to Centre

Vijay has urged the Union government to reduce the cotton import duty from 11 per cent to zero, arguing that the move would:

• Stabilise raw material supply

• Protect employment

• Boost exports

• Improve global competitiveness of India’s textile industry

The appeal comes amid growing concerns from textile clusters across Tamil Nadu over rising input costs and shrinking margins.

With IANS inputs