The Southern India Mills’ Association (SIMA) has called for the permanent removal of the 11% import duty on cotton, saying the move would help reduce volatility in cotton prices and support the textile value chain.

SIMA Chairman Durai Palaniswamy said stable raw material prices are essential for maintaining a level playing field across the textile industry. He also urged the government to address speculation in cotton prices and review the import parity pricing approach followed by the Cotton Corporation of India (CCI) and cotton trade.

Palaniswamy suggested that the role of CCI could be strengthened along the lines of China’s national cotton reserve system, which maintains substantial stocks to support price stability.

He said India’s textile industry is entering a new phase driven by technology adoption, sustainability, innovation, diversification and value addition. Future growth, he added, will depend not only on expanding production capacity but also on improving efficiency and developing higher-value textile products.

The comments came after SIMA’s annual meeting, where Durai Palaniswamy was re-elected chairman for 2026-27. Other office-bearers, including S. Krishnakumar and K. Sivaraj, were also re-elected to their respective positions.