COMMODITY
CAI urges government to remove 11% customs duty on imports of raw cotton
Dec-10-2025

Cotton Association of India (CAI) has urged the government to remove 11 per cent Customs duty on imports of raw cotton, as lower production is resulting in high domestic prices, affecting the textile industry. If the duty remains in place, global buyers will shift their purchasing volumes to Vietnam, Bangladesh, Pakistan and other markets to secure better deals, resulting in a loss of market share for the Indian textile industry.

Meanwhile, CAI has increased its cotton estimate by 4.50 lakh bales to 309.50 lakh bales for the 2025-26 season. The total supply for November is estimated at 148.37 lakh bales, which consists of the cotton pressing of 69.78 lakh bales, imports of 18 lakh bales and the opening stock estimated by the CAI at 60.59 lakh bales at the beginning of the season. Further, the association has estimated cotton consumption for November at 48.40 lakh bales, while the export shipments up to November 30, 2025, are estimated at 3 lakh bales.

Stock at the end of November is estimated at 96.97 lakh bales, including 50 lakh bales with textile mills, and the remaining 46.97 lakh bales with CCI, Maharashtra Federation and others (MNCs, traders, ginners, exporters, among others), including cotton sold but not delivered.

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