The cabbotage rule for transport of cotton along with several other products has been relaxed.
This is expected to greatly benefit lakhs of cotton farmers in Gujarat and spinning mills in Tamil Nadu. Foreign flag vessels might be in a position to offer competitive rates.
The cotton textile industry had demanded a relaxation of the cabbotage rule for transporting cotton from ports in Gujarat to ports in Tamil Nadu.
Though India is the largest cotton producing country and net exporter of cotton in the world, the domestic cotton textile industry could not derive a competitive advantage due to the steep increase in cotton transportation costs.
At the same time, countries like China and Vietnam transport cotton at a much cheaper cost.
Tamil Nadu spinning mills consume around 50 lakh bales of cotton grown in Gujarat.
During the peak cotton season the lorry freight per bale between a ginning factory in Gujarat and a spinning mill in Tamil Nadu was up to Rs 1000 a bale. The cost of transporting cotton from countries in West Africa to spinning mills in Tamil Nadu was around Rs 400 a bale.
Gujarat is the largest cotton producing state in India. Spinning mills in Tamil Nadu account for 47 per cent of the spinning capacity in the country.

- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Secondhand apparel enters asset era as global resale market targets $393 bn by 2…
Clothing is increasingly being treated not as a depreciating consumer good but as a tradable financial-like asset. As per ThredUp... Read more
RMG at Inflection Point: Bangladesh’s export slide raises competitiveness questi…
Bangladesh’s export economy has entered a decisive phase. Latest Export Promotion Bureau data for July-March FY26 shows merchandise shipments declining... Read more
Rural India emerges as apparel’s next manufacturing frontier as investments cros…
For decades, India’s apparel industry’s growth revolved around densely packed urban clusters such as Bengaluru, Tiruppur, Noida and Gurugram, where... Read more
From ghost malls to fulfilment engines China’s retail space rewiring enters a ne…
China’s retail economy has entered a paradoxical phase where macro expansion and micro distress are happening simultaneously. Total retail sales... Read more
From commodity to control, Asia’s growing grip on the polyester chain
" " The global polyester market has seen a reset that extends far beyond crude-linked volatility. Polyester, now accounting for over... Read more
The End of Youth Obsession: Retail’s shift toward the silver economy
Forget the youth obsession, the ‘Silver Economy’ is no longer peripheral, it is the nucleus of global retail growth. In... Read more
Footprint up, like-for-like down, Primark’s demerger comes at a critical moment
Associated British Foods’ decision to demerge Primark into a standalone listed entity, marks one of the most consequential shifts in... Read more
Yarn Expo Shenzhen 2026: GBA connectivity and AI innovation drive mid-year sourc…
The global textile industry is preparing for a strategic return to the South China manufacturing heartland as Yarn Expo Shenzhen... Read more
Fiber Rebalance: Why cotton is gaining ground in a volatile synthetic market
Into the 2026/27 season global cotton economy is entering a decisive phase. Fresh projections from the International Cotton Advisory Committee... Read more
PM MITRA parks face execution test as India’s textile exports recalibrate
India’s textile and apparel sector closed FY 2025-26 with exports worth Rs 3,16,334.9 crore, a 2.1 per cent increase that,... Read more












