Rising cotton and yarn prices have sharply increased input costs for textile manufacturers, squeezing margins across Tamil Nadu’s export-driven industry. The shortage in domestic supply has forced mills to rely on imports.
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Tamil Nadu Chief Minister C Joseph Vijay has written to Prime Minister Narendra Modi, calling for the immediate removal of the 11 per cent import duty on cotton. The letter, sent on Thursday, cited a deepening crisis in the state’s textile and apparel sector driven by a sharp rise in raw material costs.
The trigger for the letter is a rapid increase in cotton prices over the past two months. Cotton prices have climbed from Rs 54,700 to Rs 67,700 per candy, a rise of nearly 25 per cent. Yarn prices have followed the same trajectory, moving from Rs 301 per kg to Rs 330 per kg in the same period.
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Vijay attributed the spike to two factors: a shortfall in domestic cotton production and heightened trading activity across India, both of which have disrupted supply chains and squeezed manufacturers.
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With domestic supply under stress, the Chief Minister said imports have become the only reliable route to keep raw material flowing into factories. However, the current 11 per cent import duty makes that option financially difficult for most manufacturers.
“Permitting duty-free cotton imports will help the industry meet increasing export commitments and remain globally competitive,” Vijay said in the letter.
He urged the Centre to bring the import duty down from 11 per cent to zero. The CM argued that the move would stabilise raw material supply, protect employment, boost export volumes, strengthen India’s position in global textile markets.
The Chief Minister framed the issue in terms of Tamil Nadu’s outsized role in India’s textile economy. The state is India’s largest textile and apparel exporter. The sector supports the livelihoods of lakhs of workers.
Vijay pointed out that beyond agriculture, textiles remain one of the country’s largest employment-generating industries. The sector provides both direct and indirect jobs across spinning mills, weaving units, garment factories, and allied trades.
“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,” he said.
Vijay’s demand is specific: a complete waiver of the 11 per cent import duty on cotton, with immediate effect. The Chief Minister’s office has not indicated a deadline attached to the request. But the urgency of the letter shows the pace at which costs have risen in recent weeks.
The ball now lies with the central government.
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