The Government of India has announced a temporary exemption of customs duties on cotton imports from June 1 to October 31, 2026, in a move aimed at balancing the interests of cotton farmers while supporting the country’s textile and apparel industry.
According to the government, the decision has been taken with a balanced approach that considers the needs of the entire cotton value chain. Implemented during the cotton off-season, the temporary duty exemption is expected to ensure adequate cotton availability for domestic industries while maintaining market stability.
The measure is designed to support textile manufacturers, apparel exporters and micro, small and medium enterprises (MSMEs) that have been facing pressure from rising raw material costs. Improved access to cotton is expected to help moderate input costs across the value chain and enhance the competitiveness of Indian textile products in global markets.
The government stated that the decision will contribute to strengthening India’s textile sector by ensuring a steady supply of cotton during a period when domestic availability is typically limited. At the same time, the timing of the exemption has been structured to safeguard the interests of cotton farmers and minimise any disruption to domestic market dynamics.
India’s textile and apparel industry, one of the country’s largest employment-generating sectors, is expected to benefit from greater raw material availability and improved cost efficiencies. The move is also likely to provide relief to MSMEs, which form a significant part of the textile manufacturing ecosystem.
By facilitating cotton imports during the off-season, the government aims to support industry growth, improve export competitiveness and maintain a stable and balanced cotton market that benefits both producers and manufacturers.
