Zero import duty on ELS cotton will enhance competitiveness and boost Indian textile exports, according to the Cotton Association of India (CAI).
The Indian government’s move to scrap customs duty on extra-long staple (ELS) cotton is expected to improve the global competitiveness of Indian textile exports, the Cotton Association of India (CAI) has said. ELS cotton is a premium fibre widely used in the production of high-quality yarns and fabrics. As part of the policy update, ELS cotton has been placed under the First Schedule of the customs tariff, bringing the import duty on this specific fibre category down to zero. The decision reflects long-standing industry requests for easier access to quality raw materials and forms part of broader efforts to strengthen India’s textile exports amid changing global trade dynamics.
According to CAI, the duty exemption will lower input costs for spinners and textile manufacturers that depend on ELS cotton, helping them offer more competitively priced products in international markets. The association termed the step a progressive measure that could enhance India’s presence in premium textile segments worldwide. Industry experts added that the move supports other recent government initiatives for the sector, including the extension of a general cotton import duty waiver until December 2025. This wider exemption was introduced to offset the impact of higher US tariffs on Indian apparel exports and to stabilize raw material availability.
ELS cotton, generally defined by fibre lengths of more than 32 mm, is essential for manufacturing fine-count yarns and luxury fabrics. Since domestic availability remains limited, Indian mills often source the fibre from countries such as Australia and Egypt. Eliminating import duty therefore addresses long-standing concerns related to costs and supply reliability.
Textile exporters and trade associations have welcomed the decision, noting that it could support export growth at a time when Indian textile and apparel producers are facing intense competition from other global manufacturing centres.