The Government of India has announced a temporary exemption on customs duties for cotton imports from June 1 to October 31, providing significant relief to the domestic textile industry. The decision, notified by the Ministry of Textiles, is aimed at ensuring adequate cotton availability during the off-season while supporting the entire cotton value chain.
According to the ministry, the duty waiver has been introduced with the interests of cotton farmers, textile manufacturers, and related stakeholders in mind. The move is expected to improve the supply of raw cotton to textile mills, helping manufacturers manage rising input costs and maintain production levels.
The exemption comes at a crucial time for the textile sector, particularly for micro, small and medium enterprises (MSMEs), which often face challenges related to raw material availability and fluctuating prices. By allowing duty-free cotton imports during the off-season, the government hopes to stabilize the market and reduce pressure on domestic supplies.
Industry experts believe the measure will enhance the competitiveness of Indian textile products in global markets by ensuring a steady supply of cotton at more affordable prices. Lower input costs could also help textile exporters remain competitive amid increasing international competition.
The Ministry of Textiles stressed that the temporary duty exemption has been carefully planned to balance the needs of both farmers and industry players. Since the measure is being implemented during a period when domestic cotton arrivals are relatively lower, it is expected to supplement local supplies without adversely affecting cotton growers.
The government also stated that the initiative will contribute to market stability and strengthen India’s textile value chain, one of the country’s largest employment-generating sectors. The duty-free import window will remain in effect until October 31, after which customs duties on cotton imports are expected to be reviewed in line with prevailing market conditions.
