Government extends cotton import duty exemption through December 31, 2026
Published · Updated
What happened
The Government of India extended the customs duty exemption on cotton imports until December 31, 2026, replacing the earlier end date of October 31. The policy keeps imported cotton free of the customs levy for two more months.
Why it matters
The extension changes landed-cost calculations for cotton users immediately and can alter import orders, inventory plans, and domestic price formation for cotton and yarn. It also signals that the government is willing to use trade-policy tools to moderate raw-material costs for the textile sector.
The Government of India has extended the customs duty exemption on cotton imports until December 31, 2026. The exemption had first been introduced in May and was due to expire on October 31. The move is aimed at easing input costs for textile mills and limiting pressure on domestic cotton prices and yarn costs in the near term.
Watch for
Ministry of Finance notification text in the Gazette clarifying tariff lines and effective date on or after 2026-11-01 Directorate General of Foreign Trade update on cotton import policy treatment and HS-code applicability by 2026-11-04 ICE cotton futures and Indian yarn price quotations for the first full trading session after 2026-11-01 Cotton Association of India statement on import volumes or domestic arrivals by 2026-11-04
Sources
- Economy News Today: Latest News on Indian Economy, GDP Growth Forecast | Business Standard · business-standard.com
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