TASMA has urged the Finance Minister to extend the duty-free cotton import facility to support spinning mills, stabilize raw material costs, and boost yarn production.
The Tamil Nadu Spinning Mills Association (TASMA) has urged Finance Minister Nirmala Sitharaman to extend duty-free imports of cotton beyond December 31, 2025, as the country could face a cotton shortage in view of lower production.
TASMA President A P Appukutty, in a letter to the Finance Minister, said extending duty-free imports may ease the availability of cotton and help mills to competitively price their products in the global market.
Welcoming the government’s move to extend duty-free imports from September 30, 2025, to December 31, 2025, he said it helped mills to import cotton at a price lower by 11 per cent and offer their products at a competitive price in the global market.
The decision proved crucial when the industry faced a critical situation due to the imposition of 50 per cent tariffs by the US on all Imports.
Lower production estimate
Pointing to the Committee on Cotton Production and Consumption, estimating cotton production for this season (October 2025-September 2026) lower at 292.15 lakh bales (170 kg), Appukutty said domestic availability will be the lowest compared to the past few years.
Extending the duty-free imports further will benefit mills, particularly at a time when cotton arrivals are reported to be low.
Extending the duty-free imports further will benefit mills, particularly at a time when cotton arrivals are reported to be low.
News Courtesy : Business line