Govt Waives Cotton Import Duty Temporarily To Support Textile Industry
In a move aimed at ensuring raw material availability and stabilising input costs for the textile sector, the Government of India has announced a temporary exemption on customs duty for cotton imports from June 1 to October 31, 2026.
The decision is designed to maintain a balanced approach between protecting domestic cotton growers and supporting the broader textile value chain during the cotton off-season, when domestic supplies are typically constrained.
The temporary duty waiver is expected to provide much-needed relief to spinning mills and downstream textile manufacturers, particularly MSMEs, by ensuring smoother access to cotton at competitive prices. The measure is also likely to help moderate raw material costs and improve the global competitiveness of Indian textile exports.
The government stated that the exemption has been carefully timed to avoid disruption to farmer interests while addressing supply-side challenges faced by the industry during seasonal gaps.
For India’s textile sector, which continues to navigate cost pressures and increasing global competition, the move is expected to improve operational flexibility and support production continuity across spinning, weaving and apparel manufacturing segments.
