Chief Minister Urges PM to Remove Import Duty on Cotton Amid Price Crisis

PRESS RELEASE Letter from Hon'ble Tamil Nadu Chief Minister Thiru. C. Joseph Vijay to Hon'ble Prime Minister of India Thiru. Narendra Modi, urging the removal of the import duty on cotton. The Hon'ble Chief Minister of Tamil Nadu, Thiru. C. Joseph Vijay, wrote a letter today (14.5.2026) to the Hon'ble Prime Minister of India, Thiru. Narendra Modi, urging the removal of the import duty on cotton. In the letter, he stated that Tamil Nadu continues to be India's largest textile and apparel exporting state, and that lakhs of people, particularly women workers from rural and semi-urban areas, derive direct and indirect employment through this industry. He noted that in recent times the industry has faced a severe crisis due to a rise in cotton prices followed by a rise in yarn prices, and stated that he understood the main reasons for this to be a decline in domestic cotton production and increased trading activity. He pointed out in his letter that the price of cotton has risen over the last two months from Rs.54,700 to Rs.67,700 per candy — an increase of 25% — while the price of yarn has risen from Rs.301 to Rs.330 per kilogram during the same period. He stated that in this situation, continued supply of raw material can be assured only through imports, but that cotton currently attracts an 11% import duty. He emphasised in his letter that in such circumstances, exempting cotton imports from duty would help the growing industry fulfil export orders and remain competitive in the global market. He also noted that, after agriculture, the textile and apparel sector is the industry that generates the largest employment, and that it is the government's foremost responsibility to safeguard the employment of lakhs of people and to ensure the sustainability of the textile value chain. He has therefore requested that, in order to ensure the availability of raw material, steps be taken to completely remove the existing 11% import duty on cotton. He further emphasised in his letter that this would help the textile and apparel industry remain globally competitive, increase exports, and protect jobs. ****** [Text of the D.O. Letter of the Hon'ble Chief Minister of Tamil Nadu Thiru. C. Joseph Vijay addressed to the Hon'ble Prime Minister of India, Thiru. Narendra Modi, requesting removal of the import duty on cotton: 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 the 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 price of cotton has increased from Rs. 54,700 to Rs.67,700 per candy, which is an increase of 25% during the last two months, while the yarn price has increased from Rs.301 to Rs.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% on cotton. In such a situation, permitting duty-free cotton imports will help the industry meet increasing export commitments and remain globally competitive. After agriculture, the textile and apparel sector is one of the largest employment-generating sectors. 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. Hence, I request your intervention to remove the import duty on cotton from the existing 11% to 0% 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.] ********** Issued By: Director, Directorate of Information and Public Relations, Chennai-9