Request to Extend Duty-Free Import of Raw Cotton to Ensure Supply Stability
The Tamil Nadu Spinning Mills Association (TASMA) has urged the Finance Minister to extend the duty-free import period for raw cotton beyond December 31, 2025. This request is aimed at addressing the potential cotton shortage in India and ensuring a steady supply for the industry. The association believes that extending the duty-free import exemption will improve cotton availability in the country and help mills sell their products at competitive prices in the global market. Welcoming the government's initiative, the association noted that the initial deadline for duty-free imports was set for September 30, 2025. Extending it to December 31, 2025, is seen as a significant move for the industry. It will allow mills to import cotton at 11% lower prices, strengthening their competitive position in the global market. This decision is especially important as the U.S. has applied a 50% duty on cotton imports, making the extension of duty-free imports crucial. The benefit of extending the duty-free import period will not only be felt by large industry players but also by small and medium-sized mills. With estimates showing a decline in domestic cotton production, this move is seen as vital for the country�s cotton industry. It will help mills maintain smooth operations and meet customer demands on time, especially when domestic cotton production and consumption are expected to be at their lowest in recent years. According to the Cotton Production and Consumption Committee's data, the estimated cotton production for the season (October 2025 to September 2026) is around 292.15 lakh bales (each bale weighs 170 kg). This is significantly lower than in previous years, increasing the dependence on imports. In this context, extending the duty-free import benefit will be crucial for the mills. This move will offer several benefits to mills. Firstly, it will prevent them from having to rely on high-cost alternatives during periods of cotton shortage, which could increase the price of their products. Additionally, mills will be able to avoid production halts or price volatility caused by raw material shortages. Export-oriented mills will also benefit by remaining competitive in the global market, as they will be able to source cheaper raw cotton, thereby stabilizing their production costs. The move will not only help the textile industry remain stable but also enhance India�s competitiveness in the global market. Ensuring the supply of cotton will keep mill costs under control and boost the export potential of the Indian textile industry. In conclusion, extending the duty-free import period has become a necessity for the industry. This decision will strengthen the supply chain, control production costs, and maintain global competitiveness. It will be a strategic step for Indian textile mills, helping them maintain stability in production and exports in the face of challenges in the coming years.