Government waives customs duties on cotton imports till October 2026
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The Centre has exempted all customs duties on cotton imports from June 1 to October 30, 2026, in a move aimed at improving raw material availability for the domestic textile industry.
The Finance Ministry said the temporary exemption is expected to reduce input costs across the textile and apparel sector and provide relief to manufacturers while ensuring adequate cotton supply.
Under a notification issued by the Department of Revenue, imported cotton has been granted complete exemption from basic customs duty as well as the Agriculture Infrastructure and Development Cess (AIDC) during the specified period.
“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.
According to the notification, the government decided to grant the exemption in the public interest under powers available through the Customs Act, 1962, and the Finance Act, 2021.
The government said the measure is expected to improve the availability of cotton in the domestic market and support the textile industry, particularly small and medium enterprises that depend on a steady supply of the raw material.
The exemption is also expected to lower the cost of imported cotton and help ensure adequate supplies during the upcoming production season.
India's textile and apparel sector is one of the country's largest manufacturing industries and a major consumer of cotton. Industry bodies have frequently sought lower import costs during periods of tight domestic supply and elevated raw material prices.
The government said the move is expected to have a positive impact on the performance of the textile sector by improving cotton availability and easing cost pressures for manufacturers.