India’s textile industry is pushing for immediate government intervention as rising cotton and raw material costs begin to strain production and export competitiveness.
As per the Cotton Association of India, prices of ginned cotton have increased by 11–12% in the past month, while global cotton prices have surged 12–15% , driven by strong investor demand.
Cotton Dependency Pressures Textile Value Chain
Cotton remains the backbone of India’s textile sector, contributing to nearly 60–70% of the overall value chain. However, the industry relies significantly on imported long-staple and contamination-free cotton to meet international quality standards.
Chandrima Chatterjee of the Confederation of Indian Textile Industries highlighted that the sector has requested a temporary waiver of cotton import duty for three to six months to stabilize raw material availability and pricing.
Raw Material Inflation Hits Textile Manufacturing
The textile industry is also facing sharp increases in input costs due to a spike in crude oil prices following the US-Israeli strikes on Iran. This has led to a 10–6% rise in the cost of key textile raw materials, including synthetic fibres, dyes, and chemicals.
Sanjay Jain, Managing Director of TT Limited, noted that supply chains have become volatile and expensive, making it increasingly difficult for Indian textile manufacturers to maintain cost efficiency.
Competitiveness Under Pressure
Indian textile exporters are facing growing pressure from global competitors such as Vietnam and Bangladesh, which benefit from duty-free access to raw materials.
Industry experts warn that without policy support, including duty relief on cotton imports, India’s textile sector may lose its competitive edge in the global market.
With cotton prices rising and input costs escalating, the textile industry is urging swift government action to safeguard production stability, export performance, and long-term growth.
Source: ET Retail
(Rewritten & adapted by Indian-Apparel.com News Desk)
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