1 week ago
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The textile manufacture has thanked Prime Minister Narendra Modi, and Union Ministers Nirmala Sitharaman, Shivraj Singh Chouhan, Piyush Goyal, Giriraj Singh for exempting fabric from 11% customs work and agriculture cess connected earthy fabric imports effectual from June 1 to October 31 ,2026.
The Ministry of Finance issued a notification connected May 30, 2026 exempting the 5% Basic Customs Duty, 5% Agriculture Infrastructure and Development Cess (AIDC), and 10% Social Welfare cess connected both, totalling 11% to assistance manufacturers header with terrible proviso concerns and input outgo pressures. India’s textile manufacture is experiencing increasing export opportunities but continues to look challenges owed to fabric shortages and higher home fabric prices. The impermanent work exemption volition alteration entree to competitively priced prime fabric from planetary markets, helping trim costs and amended manufacture competitiveness.
According to manufacture representatives, this stabilisation is expected to assistance Indian exporters capitalise connected emerging Free Trade Agreements (FTAs). Cotton accounts for astir 65% of the yarn, and 25-30% of the garment / location textiles manufacturing cost, making its availability and terms a captious determinant of the competitiveness. Stable and affordable fabric supplies are peculiarly important for exporters who run nether semipermanent contracts and supply-nominated concern arrangements, wherever fluctuations successful earthy worldly prices tin importantly interaction profitability and transportation commitments.
The textile manufacture is facing a fabric shortage of 40–50 lakh bales, with home accumulation of astir 290 lakh bales falling abbreviated of the yearly request of 330–350 lakh bales. Despite having 38% of the world’s fabric cultivation area, India contributes lone 19% of planetary accumulation owed to debased productivity levels.
Industry representatives said India whitethorn instrumentality 7–10 years to execute self-sufficiency successful fabric accumulation done the ₹5,659-crore Mission for Cotton Productivity. They noted that technological adoption, regulatory approvals, mechanisation, and improved farming practices are indispensable to boosting productivity and quality.
Chairman of CITI Ashwin Chandran, Vice-Chairman of TEXPROCIL Ravi Sam, Chairman of SIMA Durai Palanisamy, Deputy Chairman of SIMA S. Krishnakumar, and Secretary General of SIMA K. Selvaraju, besides appreciated Tamil Nadu Chief Minister C. Joseph Vijay for urging the Centre to region the 11 per cent fabric import duty.
They stated that an uninterrupted proviso of prime and customer-specified fabric is indispensable for the predominantly cotton-based textile industry, which supports the livelihoods of astir 8 crore agrarian workers, peculiarly women.
Industry representatives besides noted that competing textile-exporting countries specified arsenic Bangladesh, Vietnam, Pakistan, Indonesia and Turkey let duty-free fabric imports.
