Government Likely to Continue Duty-Free Cotton Imports Beyond October
What Happened
The Centre is considering extending the customs duty exemption on raw cotton imports beyond its current October 31, 2026 expiry, with indications that the waiver could continue at least until December 2026, according to government and industry sources. The duty exemption was introduced from June 1 to October 31, 2026 to improve cotton availability, lower input costs, and boost the competitiveness of India's textile sector.
Key Takeaways
The possible extension reflects ongoing concerns about cotton supply and the textile industry's demand for a more predictable import policy. Industry leaders argue that duty-free access to imported cotton helps Indian manufacturers compete with exporters in countries such as Bangladesh and Vietnam, while also reducing raw-material costs. However, no final decision has been announced yet.