India Waives Customs Duty on Cotton Imports for Five Months Starting June 2026
Govt waives customs duty on cotton imports for 5 months from June 2026

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The Indian government has announced a customs duty exemption on cotton imports for five months, starting June 1, 2026. This measure aims to enhance cotton availability for the textile sector and reduce manufacturing costs, benefiting both manufacturers and consumers.
- 01The customs duty exemption applies from June 1, 2026, to October 31, 2026.
- 02The exemption includes both the basic customs duty and the Agriculture Infrastructure and Development Cess.
- 03The measure is designed to lower raw material costs for the textile and apparel sector.
- 04The Finance Ministry emphasizes the importance of supporting small and medium enterprises reliant on stable cotton supplies.
- 05The decision is made under the Customs Act, 1962, and aims to serve public interest.
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The Central Government of India has announced a waiver of customs duty on cotton imports for a five-month period starting June 1, 2026, through a notification from the Ministry of Finance. This exemption covers the entire basic customs duty and the Agriculture Infrastructure and Development Cess on cotton imports, remaining effective until October 31, 2026. The Finance Ministry stated that this initiative aims to enhance the availability of cotton for the domestic textile sector, which is one of India's largest manufacturing industries. The temporary duty exemption is expected to lower raw material costs across the textile value chain, providing relief to manufacturers and consumers while considering the interests of domestic farmers. The measure particularly supports small and medium enterprises that depend on stable cotton supplies, thus positively impacting the overall performance of the domestic textile industry. This decision was made under the powers conferred by the Customs Act, 1962, and the Finance Act, 2021, with the government asserting it is necessary for public interest.
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The duty exemption is expected to lower cotton prices, benefiting manufacturers and consumers in the textile sector.
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