Govt waives import duty on cotton till October 30

The Centre has exempted all customs duties on cotton imports for a period of five months, from June 1 to October 30, 2026, in a move aimed at ensuring adequate availability of the key raw material for the domestic textile sector and easing input cost pressures on manufacturers.According to information, the decision was notified by the Ministry of Finance on Saturday. According to the notification, the duty exemption will come into effect from June 1 and remain in force until October 30, 2026.
The temporary measure is expected to boost cotton supplies in the domestic market at a time when the textile and apparel industry has been grappling with elevated raw material costs. By allowing duty-free imports, the government aims to improve access to cotton for mills and manufacturers, particularly small and medium enterprises (SMEs), which form a significant part of India's textile value chain.In a statement, the ministry stated the exemption would help increase the availability of cotton for the Indian textile sector and reduce input costs across the textile and apparel industry."The temporary duty exemption is expected to reduce input costs across the textile and apparel sector, thereby providing targeted relief to manufacturers and consumers, while also keeping the interests of domestic farmers in mind," the ministry said.
Industry stakeholders have long sought measures to ensure stable cotton supplies and competitive pricing, especially as India seeks to strengthen its position as a major global exporter of textiles and garments. Lower raw material costs are expected to improve margins for manufacturers and enhance the competitiveness of Indian textile products in international markets.The government noted that the decision is anticipated to have a positive impact on the overall performance of the domestic textile industry by ensuring better availability of cotton in the market. The move is also expected to support production, employment and exports across the sector.
India is one of the world's largest producers and consumers of cotton, and the textile industry remains a crucial contributor to the country's manufacturing output, exports and job creation. The latest duty relief is aimed at balancing the needs of the industry while safeguarding the interests of cotton growers.With the festive and export seasons approaching, industry participants expect the exemption to provide much-needed support to textile manufacturers and help sustain growth momentum in one of India's largest employment-generating sectors.