Centre Temporarily Suspends Customs Duty on Cotton Imports Through October 30 to Aid Textile Industry Growth

India Offers Temporary Exemption on Cotton Imports to Boost Textile Sector

The Centre has announced a temporary exemption from all customs duties on cotton imports for five months, a move aimed at improving raw material availability for India's textile and apparel industry. According to a notification issued by the Finance Ministry, cotton imports will remain exempt from basic customs duty as well as the Agriculture Infrastructure and Development Cess (AIDC) from June 1, 2026, to October 30, 2026.

The government said the decision was taken to ensure adequate cotton supply for the domestic textile sector and help manufacturers cope with input cost pressures. By lowering the cost of imported cotton, the measure is expected to provide relief across the textile value chain, benefiting textile and garment manufacturers while also supporting consumers through improved market availability.

The temporary duty waiver has been designed to address industry requirements without overlooking the interests of domestic cotton growers. Officials say the move is expected to strengthen the performance of the textile sector, particularly small and medium enterprises (SMEs), which are often more exposed to fluctuations in cotton prices and supply constraints.

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The exemption is also expected to improve the availability of cotton in the domestic market, helping ensure smoother production cycles and supporting the industry's growth in the coming months. This move by the Centre is seen as a significant step towards supporting the growth of the textile sector in India.