Government Waives Cotton Import Duty Until October 2026

India has announced it will suspend customs duties on cotton imports for five months, effective from June 1 through October 30, 2026. This move seeks to enhance the textile industry's access to cotton, as revealed in a notification by the finance ministry.

The exemption aims to decrease production costs in the textile and apparel sectors, offering relief to both manufacturers and consumers. The policy also considers the concerns of domestic farmers, maintaining a balance between various stakeholders. It is anticipated that the waiver will positively influence the performance of the domestic textile industry, particularly benefiting small and medium enterprises by improving cotton availability.

(With inputs from agencies.)