Govt extends customs duty exemption on cotton imports till December 31

The government has extended the customs duty exemption on cotton imports by two months until December 31, 2026, to improve raw material availability and ease input cost pressures for the domestic textile and apparel industry.

The extension was notified by the Department of Revenue, Ministry of Finance, through Notification No. 35/2026-Customs dated October 30, 2026, the Ministry of Textiles said in a statement on Saturday.

The existing exemption, announced in May for five months, was scheduled to expire on October 31.


The move aims to augment cotton supplies in the domestic market, address specialised cotton requirements and support value addition across the textile and apparel value chain.

The extension is expected to provide greater flexibility to textile and apparel manufacturers in meeting their raw material requirements, ease input cost pressures and support Micro, Small and Medium Enterprises (MSMEs).

It is also expected to facilitate uninterrupted raw material availability, improve operational flexibility and strengthen the competitiveness of Indian textiles in domestic and international markets.

The Finance Ministry had earlier said the measure would help reduce input costs across the textile and apparel sector, benefiting manufacturers and consumers while keeping the interests of domestic farmers in mind.