Govt exempts customs duty on cotton imports for five months

New Delhi: The government on Saturday announced a five-month exemption on customs duties for cotton imports with effect from June 1, aimed at increasing the availability of raw material for the domestic textile industry.

The duty waiver, which will remain in place till October 30, is expected to lower input costs for textile and apparel manufacturers, particularly benefiting small and medium enterprises.

The move will provide targeted relief to the industry and consumers while balancing the interests of domestic cotton farmers.


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The temporary exemption comes amid concerns over tight cotton supply and rising prices, which have increased production costs for textile firms.

By allowing cheaper imports, the government aims to ease supply constraints and stabilise the market ahead of the peak festival and export seasons.

Industry was asking for a waiver as softening of raw material costs could enhance competitiveness and help manufacturers pass on the savings to consumers.

The temporary measure is expected to address immediate supply pressures. The decision aligns with broader efforts to strengthen India's textile sector, which contributes significantly to employment and export earnings.