The Apparel Export Promotion Council says the temporary duty exemption could lower input costs, improve cotton availability and support India’s textile and apparel exports.
The Apparel Export Promotion Council (AEPC) has welcomed the Government of India’s decision to temporarily exempt cotton imports from customs duties. The exemption covers imports from June 1 to October 30, 2026. The move aims to improve cotton availability and provide relief to India’s textile and apparel industry.
AEPC Thanks Government for Cotton Duty Relief
Dr. A. Sakthivel, Chairman of AEPC, thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for supporting the industry. He also expressed gratitude to Commerce and Industry Minister Piyush Goyal, Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan, and Textiles Minister Giriraj Singh.
Dr. Sakthivel also appreciated L. Murugan, Minister of State for Information and Broadcasting and Parliamentary Affairs. He recognised Murugan’s support, coordination and efforts to address concerns across the textile and apparel sector.
Duty Exemption May Lower Textile Industry Costs
According to AEPC, the temporary exemption could reduce input costs across the textile and apparel value chain. It may also improve cotton availability and strengthen the competitiveness of Indian exports.
Small and medium enterprises could benefit in particular. Many businesses have faced pressure from rising cotton and yarn prices.
Dr. Sakthivel described the removal of customs duties as a timely step. He said the measure could help moderate domestic cotton prices and ease cost pressures across the industry.
AEPC Urges Spinning Mills to Rationalise Yarn Prices
Dr. Sakthivel also urged spinning mills to pass on the benefits of lower cotton costs. He called on mills to rationalise yarn prices in line with the reduced input costs.
Lower yarn prices could help stabilise the textile value chain. They could also allow garment exporters to price their products more competitively in global markets.
AEPC Highlights Its Representations to the Government
AEPC has raised the issue of cotton import duties with several ministries through meetings and formal representations. These included the Ministries of Finance, Commerce and Industry, Agriculture, and Textiles.
The council highlighted the need for duty-free cotton imports to address cost pressures. Dr. Sakthivel said the government’s decision reflects its commitment to the growth and competitiveness of India’s textile and apparel industry.
Export Competitiveness Remains a Key Focus
AEPC expects the temporary duty exemption to support India’s position as a global sourcing destination. The council also believes the measure could improve export competitiveness and support growth in textile and apparel exports.
The impact will depend partly on how cotton prices and yarn costs respond to the exemption. Exporters and manufacturers will also look for improved raw material availability as they fulfil orders for international markets.
