The Tiruppur knitwear and textile industry has welcomed the Centre’s decision to temporarily remove customs duty on cotton imports, describing it as a timely intervention that will help reduce production costs, improve raw material availability, and enhance the global competitiveness of India’s textile and apparel exports. 

The Centre has announced a temporary exemption from all customs duties on cotton imports from June 1 to October 30, a move aimed at addressing concerns over rising cotton prices and ensuring adequate supply to the textile sector.

Industry leaders said the decision would provide much-needed relief to manufacturers, exporters and spinning mills that have been grappling with escalating raw material costs over the past several months.

Apparel Export Promotion Council (AEPC) Chairman A. Sakthivel welcomed the announcement, stating that the duty waiver would significantly improve cotton availability for the Indian textile and apparel industry.

“The removal of customs duty on cotton imports is the need of the hour. It will help moderate domestic cotton prices, improve the availability of quality cotton and reduce input costs across the textile value chain,” he said.

Sakthivel noted that the measure would strengthen the competitiveness of Indian textile and apparel exports in international markets at a time when exporters are facing intense competition from several textile-producing nations.

He added that the decision would particularly benefit small and medium enterprises (SMEs), many of which have been under pressure due to a sharp increase in cotton and yarn prices.

Tiruppur Exporters’ Association (TEA) President K.M. Subramanian also welcomed the move, saying it would directly benefit the knitwear manufacturing sector. “The industry has been seeking measures to ease the burden of rising raw material costs. This decision will help reduce production expenses and improve the operating environment for knitwear exporters,” he said.

South India Hosiery Manufacturers Association (SIHMA) President P. Shanmugasundaram said the temporary duty exemption would support the entire textile ecosystem, including spinning mills, fabric manufacturers and garment exporters.

He observed that lower cotton prices would improve the availability of raw materials and provide a boost to major textile hubs such as Tiruppur, which plays a crucial role in India’s knitwear exports.

Industry stakeholders expressed hope that the duty waiver would stabilise cotton prices, strengthen export growth and provide fresh momentum to one of the country’s largest employment-generating sectors.