India Grants Temporary Duty Exemption on Cotton Imports

The Indian government has announced a temporary exemption from customs duties on cotton imports, effective from June 1 until October 30, 2026. The move is intended to increase the availability of raw materials and reduce input costs for the domestic textile and apparel industry, particularly for small and medium-sized enterprises.

The decision comes amid concerns over a domestic supply deficit and rising cotton prices, which have increased production costs. Industry bodies estimate current domestic production at approximately 290 lakh bales against sector demand of 330-340 lakh bales, creating a significant shortfall. Officials stated the policy aims to ease supply constraints, stabilize the market ahead of peak seasonal demand, and enhance the global competitiveness of Indian textile exports.

Major industry associations have welcomed the measure. The Confederation of Indian Textile Industry stated the removal of the 11 percent import duty addresses a key disadvantage for Indian manufacturers compared to competing Asian nations that have duty-free access to cotton. The Apparel Export Promotion Council noted the decision would particularly benefit smaller enterprises grappling...