India extends cotton import duty relief through year-end 2026

The extension gives textile manufacturers two more months of duty-free access to imported cotton, easing input costs and supporting production planning.

India has extended its customs duty exemption on cotton imports until 31 December 2026, giving the country’s textile makers two more months of relief as they head into the year-end production cycle. The Ministry of Textiles said the decision, which was notified by the Department of Revenue on 30 October, is intended to keep cotton available at competitive prices and reduce pressure on manufacturers’ input costs.

The exemption, which had been due to lapse on 31 October, was first introduced in May and took effect on 1 June. That earlier measure was framed as temporary support for the textile sector, with the government saying at the time that it wanted to improve access to raw material while still taking account of domestic cotton farmers. The latest extension keeps that balance in place for the remainder of 2026.

In its statement, the ministry said the policy is meant to support specialised cotton requirements, improve supply for mills and apparel makers, and create more room for value addition across the cotton-to-clothing chain. It also said the measure should give textile companies greater flexibility in sourcing raw materials, help micro, small and medium-sized enterprises, and strengthen India’s position in both domestic and export markets.

The Confederation of Indian Textile Industry welcomed the move, according to PTI, which reported that the industry body sees the extension as a way to help firms manage costs and plan production more effectively. The relief comes at a time when cotton availability remains central to pricing and margins throughout the textile supply chain, from spinning and weaving through to garment manufacturing.