The South India Spinners Association (SISPA) has welcomed the government’s decision to temporarily exempt the 11% import duty on cotton from June 1 to October 31, 2026. However, the association has emphasised that recurring temporary exemptions do not provide a long-term solution to the challenges faced by the cotton and textile value chain.

According to SISPA, small and medium spinning mills continue to be severely affected by fluctuations in cotton prices. Variations in domestic cotton production, quality, availability, and international price movements have significantly increased raw material costs, affecting their competitiveness and sustainability.

They also stated that the periodic imposition and withdrawal of cotton import duty over the years have created uncertainty in the cotton market and contributed to price volatility. Such fluctuations often benefit intermediaries and stockholders, while the burden falls on spinning mills and textile manufacturers.

SISPA pointed out that small spinning mills generally procure cotton only to meet immediate production requirements and do not have the financial capacity to maintain large inventories. Moreover, a significant portion of the yarn produced by these mills is sold in the domestic market rather than exported.

SISPA further highlighted that during the 2025–26 season, cotton prices increased from around ₹55,000 per candy to levels exceeding ₹65,000–₹70,000 per candy. Many mills were compelled to procure cotton at these elevated prices and continue production.

SISPA has urged the government to introduce a permanent, predictable policy on the existing 11 per cent cotton import duty and establish a transparent, formula-based mechanism that would automatically suspend the duty whenever the gap between domestic and international cotton prices exceeds a specified threshold.

They further stressed the need to ensure the availability of Indian cotton to the textile industry at internationally competitive prices and quality standards, while strengthening market transparency and implementing effective intervention mechanisms through agencies such as the Cotton Corporation of India to help stabilise cotton prices.

SISPA firmly believes that the interests of cotton farmers and the textile industry are not mutually exclusive. Farmers deserve remunerative prices for their produce, while textile manufacturers require access to quality raw materials at competitive prices. A balanced approach is essential to ensure the growth and sustainability of the cotton-textile value chain.

The association said a predictable policy framework should safeguard the interests of farmers, spinning mills, textile manufacturers, and the millions of workers dependent on the industry.