Duty-free cotton imports allowed from June 1 to October 31 to improve raw material availability and reduce input costs for textile manufacturers.
NEW DELHI – The Government of India has announced a temporary exemption on customs duties for cotton imports from June 1 to October 31, 2026, in a move aimed at supporting the domestic textile and apparel industry amid rising raw material costs and supply concerns.
The Ministry of Textiles said the decision has been taken to ensure adequate cotton availability during the off-season while safeguarding the interests of cotton farmers and the broader cotton value chain. The exemption is expected to help textile manufacturers, particularly micro, small and medium enterprises (MSMEs), by easing input cost pressures and improving competitiveness in global markets.
Currently, cotton imports attract an effective duty of around 11%, including customs duty and related levies. Industry bodies had been urging the government to remove the duty, citing rising cotton and yarn prices, increasing production costs and growing competition from major textile-exporting countries with lower raw material costs.
The temporary duty waiver is also expected to improve access to contamination-free cotton required by export-oriented spinning and textile mills. Industry estimates suggest imports could be sourced from countries such as Australia, Brazil, the United States and several African nations during the exemption period.
Textile industry associations have welcomed the move, stating that improved cotton availability and lower input costs will strengthen India’s textile exports and support production continuity across spinning, weaving and apparel manufacturing sectors.