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Latest Agricultural News, Crop Prices, Farming, Agri Business News | The HinduBusinessLine

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TN chief minister urges PM Modi to remove import duty on cotton
2026-05-14 · via Latest Agricultural News, Crop Prices, Farming, Agri Business News | The HinduBusinessLine
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The price of cotton has increased from ₹54,700 to ₹67,700 per candy, which is a 25 per cent increase during the last two months while the yarn price has increased from ₹301 to ₹330 per kg

TN Chief minister C Joseph Vijay

TN Chief minister C Joseph Vijay | Photo Credit: RAGU R

Tamil Nadu Chief Minister C Joseph Vijay on Thursday urged Prime Minister Narendra Modi to remove the import duty on cotton to ensure the availability of raw material to garment manufacturers.

Tamil Nadu is India’s largest textile and apparel exporting state. Lakhs of people are dependent on this sector for both direct and indirect employment, especially women primarily from rural and semi-urban backgrounds. Of late, the industry is facing severe crisis due to increase in cotton price and consequently yarn prices. I understand this is caused primarily due to shortage of cotton production and increase in trading activity in the country, the letter said.

The price of cotton has increased from ₹54,700 to ₹67,700 per candy, which is a 25 per cent increase during the last two months while the yarn price has increased from ₹301 to ₹330 per kg.

In this situation the continued supply of raw material can be ensured only through imports. However, there is an import duty of 11 per cent on cotton. Permitting duty-free cotton imports will help the industry meet increasing export commitments and remain globally competitive, the letter said.

After agriculture, the textile and apparel sector is one of the largest employment - generating sector. Hence, 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.

“I request your intervention to remove the import duty on cotton from the existing 11 per cent to 0 per cent to ensure the availability of raw material. This measure will enable the textile and apparel industry to remain globally competitive, enhance exports as well as protect jobs,” Vijay said in the letter.

Published on May 14, 2026

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