Tamil Nadu Chief Minister Vijay has written to Prime Minister Narendra Modi seeking the removal of import duty on cotton, citing a worsening crisis in the state’s textile sector.
Rising concern over textile industry slowdown
In his letter, the Chief Minister said the textile and apparel industry, which is the largest employer in Tamil Nadu after agriculture, is under severe pressure. He noted that the sector supports lakhs of jobs, especially for rural and semi-urban women who form a major part of the workforce.
He attributed the crisis to a sharp rise in cotton and yarn prices, driven by supply shortages and increased trading activity.
Sharp increase in cotton and yarn prices
The Chief Minister highlighted that cotton prices have jumped nearly 25% in the past two months, rising from ₹54,700 to ₹67,700 per candy. During the same period, yarn prices increased from ₹301 to ₹330 per kg.
He said this price surge has created raw material shortages for textile manufacturers, affecting production and exports.
Import duty seen as a key barrier
Vijay pointed out that although imports could help ease the shortage, cotton imports currently attract an 11% duty. He argued that this additional cost is making it harder for the industry to access affordable raw materials.
According to him, duty-free imports would help stabilise supply and improve global competitiveness.
Call for government intervention
The Chief Minister urged the Centre to step in and reduce the import duty on cotton from 11% to zero. He said this move would support exporters, strengthen the textile value chain, and protect employment in the sector.
He stressed that safeguarding jobs in the textile industry is crucial, given its role as one of the country’s largest employment generators after agriculture.
