Centre waives customs duty on cotton imports till October 30

The Centre on Saturday exempted cotton imports from all customs duties for five months starting June 1, 2026, in a bid to improve raw material availability for the domestic textile industry.

The Finance Ministry issued a notification granting full exemption from basic customs duty as well as the Agriculture Infrastructure and Development Cess (AIDC) on imported cotton. The waiver will remain in force until October 30, 2026.

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"The Central Government, on being satisfied that it is necessary in the public interest, hereby exempts cotton, when imported into India, from the whole of the duty of customs leviable thereon under the Customs Tariff Act and from the whole of the Agriculture Infrastructure and Development Cess," the notification stated.

The decision is aimed at augmenting cotton availability for India's textile sector, which has been seeking measures to ensure adequate supplies and moderate input costs.

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The move is expected to lower the cost of imported cotton and ensure a steady supply of the key raw material during the upcoming production season.