New Delhi: The Central Government announced a temporary cotton duty exemption on imports from June 1 to October 31, 2026, to improve raw material availability for the domestic textile industry and support manufacturing activity across the country.
The decision removes all customs duties on cotton imports during the five-month period. The government said the measure aims to address supply requirements in the textile value chain while helping manufacturers secure cotton at competitive prices.
Officials stated that the move will ease pressure on input costs faced by textile and apparel producers. As a result, manufacturers may gain better access to raw materials during the upcoming production cycle.
The government noted that the exemption has been designed as a targeted intervention. It seeks to balance industry requirements while keeping the interests of domestic cotton growers in consideration.
India’s textile sector remains one of the country’s largest employment-generating industries. It supports a wide network of spinning mills, fabric producers, garment manufacturers and exporters. Therefore, adequate cotton availability plays a crucial role in maintaining production levels and market competitiveness.
Cotton duty exemption expected to improve supply
According to the government, the temporary relief will help strengthen the supply of cotton in the domestic market. In addition, it is expected to reduce procurement challenges faced by several textile units.
Small and medium enterprises are likely to benefit significantly from the measure. Many such units depend on stable raw material prices to maintain production and manage operating costs effectively.
The government said improved cotton availability could also support the apparel segment by reducing cost pressures across different stages of manufacturing. Consequently, the industry may witness better operational efficiency during the exemption period.
Officials added that the policy is expected to have a positive impact on the overall performance of the textile sector. The decision forms part of broader efforts to support industrial growth and maintain competitiveness in domestic and international markets.
The temporary customs relief will remain in force until October 31, 2026, after which the existing duty structure will apply unless the government announces further changes.
