India Exempts Customs Duties on Cotton Imports to Boost Textile Sector
Govt temporarily exempts all customs duties on import of cotton till 31 October 2026
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The Indian government has temporarily waived customs duties on cotton imports from June 1 to October 31, 2026, to lower costs for the textile industry. This measure aims to support manufacturers and consumers while considering domestic farmers' interests.
- 01The customs duty exemption will be effective from June 1, 2026, to October 31, 2026.
- 02The Ministry of Finance announced this decision to reduce input costs in the textile and apparel sector.
- 03The government allocated ₹5,659.22 crore for the Mission for Cotton Productivity from 2026 to 2031.
- 04The mission aims to enhance cotton productivity through the development of high-yielding variety seeds and modern farming technologies.
- 05The initiative will involve collaboration between various agricultural and textile ministries and research institutes.
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The Indian government has announced a temporary exemption of all customs duties on cotton imports, effective from June 1, 2026, until October 31, 2026. This initiative is designed to reduce input costs in the textile and apparel sector, providing targeted relief to manufacturers and consumers while considering the interests of domestic farmers. The Ministry of Finance emphasized that this move aims to enhance the availability of cotton for the Indian textile industry. Additionally, the government has approved ₹5,659.22 crore for the Mission for Cotton Productivity, which will run from 2026 to 2031. This mission focuses on improving cotton productivity through the development of high-yielding, disease-resistant seeds and the adoption of modern crop production technologies. The Ministry of Agriculture and Farmers Welfare, along with the Ministry of Textiles, will implement the mission, involving various agricultural research institutes to ensure quality and sustainability in the cotton value chain.
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The customs duty exemption is expected to lower costs for textile manufacturers and consumers, potentially leading to lower prices for cotton products.
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