Tamil Nadu CM Vijay Urges Centre to Scrap Cotton Import Duty Amid Textile Sector Crisis

Chennai, May 2026 : Tamil Nadu Chief Minister C. Joseph Vijay on Thursday appealed to Prime Minister Narendra Modi to immediately abolish the existing 11 per cent import duty on cotton, warning that the state’s textile and apparel industry was facing an acute crisis due to rapidly rising raw material prices.

In a detailed letter to the Prime Minister, Vijay expressed concern over the sharp increase in cotton and yarn prices over the past two months, stating that the situation was severely affecting garment manufacturers and threatening the livelihoods of lakhs of workers associated with the textile sector.

Highlighting Tamil Nadu’s crucial role in India’s textile economy, the Chief Minister said the state remains the country’s largest textile and apparel exporting hub and provides employment to a vast workforce, particularly women in rural and semi-urban regions.

“The textile and apparel industry in Tamil Nadu is undergoing a severe crisis because of the unprecedented rise in cotton and yarn prices,” Vijay stated in the letter.

According to the Chief Minister, cotton prices have surged from Rs 54,700 per candy to Rs 67,700 per candy within just two months, registering an increase of nearly 25 per cent. He also pointed out that yarn prices had risen significantly during the same period, climbing from Rs 301 per kilogram to Rs 330 per kilogram.

Vijay attributed the price escalation primarily to reduced domestic cotton production and intensified trading activities, which have disrupted supply chains and created difficulties for textile manufacturers across the state.

He noted that many textile units are now increasingly dependent on imported cotton to maintain production and meet export commitments. However, the current 11 per cent import duty has made cotton imports financially burdensome and commercially unviable for manufacturers already struggling with rising costs.

The Chief Minister stressed that allowing duty-free cotton imports would help stabilise the industry and improve the availability of raw materials.

“Permitting duty-free cotton imports will help the industry meet increasing export commitments and remain globally competitive,” he said.

Vijay further emphasised that the textile and apparel sector is one of the largest employment generators in the country after agriculture. He warned that prolonged instability in the industry could have serious socio-economic consequences, especially for workers and small-scale manufacturing units.

“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,” the Chief Minister noted.

He urged the Union Government to reduce the cotton import duty from 11 per cent to zero at the earliest, arguing that such a move would provide immediate relief to the textile industry, protect employment, support exports and strengthen India’s competitiveness in global textile markets.

Industry bodies in Tamil Nadu have also been demanding a reduction in import duties, stating that rising raw material prices are squeezing profit margins and affecting export orders at a time when international competition remains intense.

The Chief Minister expressed hope that the Centre would take urgent steps to address the concerns of the textile sector and provide timely relief to one of India’s most important manufacturing industries.

Team Maverick.