Govt Waives Cotton Import Duty Till October

• Customs duty on cotton imports waived from June 1 to October 31, 2026
• Move announced during cotton off-season
• Aims to ensure adequate raw material for textile manufacturers
• Expected to support MSMEs and improve global competitiveness

GG News Bureau
New Delhi, 31st May: The Centre has announced a temporary exemption from customs duty on cotton imports from June 1 to October 31, 2026, in a move aimed at ensuring adequate raw material availability for the textile industry while maintaining a balance between the interests of cotton farmers and manufacturers.

The decision was taken by the Government of India during the cotton off-season to address supply requirements across the textile value chain and strengthen the competitiveness of Indian textile exports.

According to an official statement, the temporary exemption is expected to support textile manufacturers, particularly micro, small and medium enterprises (MSMEs), by reducing input costs and ensuring uninterrupted access to cotton.

The government said the measure has been designed with a balanced approach that safeguards farmers’ interests while ensuring market stability and sufficient availability of cotton for industrial use.

Officials noted that adequate cotton supply is critical for maintaining production levels across spinning mills, textile units and downstream manufacturing sectors.

The exemption is also expected to help Indian textile exporters remain competitive in global markets by moderating raw material costs during a period of heightened demand.

The government emphasized that the decision reflects its commitment to supporting the entire cotton value chain, from farmers to textile producers, while ensuring stability in domestic markets.

The temporary duty waiver will remain in force until October 31, 2026, after which the existing customs duty framework is expected to be reviewed based on market conditions and stakeholder requirements.