Govt Extends Customs Duty Exemption on Cotton Imports Until Dec 31
Two-month extension aims to improve cotton availability, ease raw material costs and support domestic textile manufacturers, including MSMEs.
GG News Bureau
New Delhi, 31st Oct: The Government of India has extended the existing customs duty exemption on cotton imports by two months, allowing the benefit to continue until December 31, 2026.
The decision has been taken in view of the raw material requirements of the domestic textile industry. The Department of Revenue under the Ministry of Finance notified the extension through Notification No. 35/2026-Customs dated October 30, 2026.
The exemption, which was earlier available until October 31, 2026, will now remain in force for another two months.
Support for Textile Manufacturers
The extension aims to improve cotton availability for the domestic textile sector, ensure competitive prices and support manufacturing across the cotton and textile value chain.
The measure is also expected to help manufacturers meet specialised cotton requirements, reduce input cost pressures and promote greater value addition in the textile and apparel industry.
Relief for MSMEs and Export Competitiveness
The government expects the decision to provide greater operational flexibility to textile and apparel manufacturers, particularly Micro, Small and Medium Enterprises (MSMEs).
Improved access to raw materials is expected to support uninterrupted production, strengthen the competitiveness of Indian textiles in domestic and international markets and facilitate employment generation.
Balancing Industry and Farmers’ Interests
The government said the decision takes into account the need to balance the raw material requirements of the textile industry with the interests of domestic cotton farmers.
The Ministry of Textiles has welcomed the Ministry of Finance’s decision, reiterating its commitment to building a competitive, resilient and globally integrated textile sector.
